Cuscapi plans private placement to raise RM 22 million for business expansion and working capital

KUALA LUMPUR (Dec 24): Cuscapi Bhd has offered a private placement of 10% of its issued shares to raise up to RM 22.34 million for its business expansion and working capital.

The restaurant and business management solutions provider has announced plans to place 85.93 million new shares with third-party investors to be identified at a later date, at an indicative price of 26 sen each.

Of the expected gross proceeds of RM 22.34 million, RM 11.16 million will be used for payments to trade creditors, administrative expenses, staff costs and office expenses, the group said in a stock exchange filing.

An additional 11 million ringgit will be reserved for future business expansion opportunities, including the acquisition of assets that could complement the group’s existing ICT-related activities, and for the expansion of its existing business of management solutions. restaurants.

Cuscapi said the private placement will allow the group to raise money for financing, as the past year has been difficult for the food and beverage industry due to the Covid-19 pandemic.

The exercise is expected to be completed by the first quarter of 2022.

Cuscapi shares closed unchanged at 29 sen, giving the group a market cap of RM244.74 million. The stock has climbed 123% year-to-date from 13 sen.