Eastland Equity to raise RM2.6m via private placement

PETALING JAYA: Eastland Equity Bhd is expected to raise up to RM2.65 million from a private placement exercise of up to 10% of its total issued share.

The property developer told Bursa Malaysia that the estimated figure is based on an indicative price of 9 sen for 29.48 million shares.

Of the proceeds raised, some RM772,000 will be utilised towards repayment of bank borrowings; RM1.45 million for property development activities; RM327,000 for general working capital; and RM100,000 for private placement expenses.

However, Eastland said the private placement will not address the group’s current financial concerns as the estimated gross proceeds would not be sufficient to meet its funding requirements in the long-term or to improve its financial performance.

“However, the proposed private placement serves as an interim measure for the group to address its impending cash flow requirements whilst allowing the group to explore the acquisition of land/joint development rights.”

“In the event such acquisition (when materialised) requires additional funding, the company will explore other funding options, including debt and/or equity.“

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