SunMoon to receive a shot in the arm from China's leading e-commerce player

It would receive an additional funding of $24 million.

Singapore mainboard-listed global distributor and marketer of fresh fruits and vegetables SunMoon food Company Ltd. gave China's Shanghai Yiguo E-Commerce Co. Ltd. the go signal to inject $24 million fund in the group.

According to the group, the investment by Yiguo will help further cement it as a global distributor and marketer of branded high quality fruits and food products.

More so, the group claims the additional funding and the greater access into China via Yiguo would give them leverage on Yiguo’s network, infrastructure and logistic strengths to further its business to business channels and business to consumer ambitions.

"With the fresh funds, we would be able to focus on the company’s growth, with immediate access to Yiguo’s wide distribution network in China, strong capabilities in fresh food online operations and cold chain management," SunMoon CEO Gary Loh said.

The investment was inked through a binding term sheet under which SunMoon will place out 333.3 million new shares at 4.5 cents per share with free warrants to Yiguo 33.3 million.

SunMoon said the proposed placement to Yiguo would represent a 51% stake in the enlarged share capital of the company post-placement.