MM2 Asia to jumpstart growth as it sells $5m in new shares to three investors

It will issue 6,351,625 shares at $0.7872 each.

The film and television content production firm aims to take their projects to another level while simultaneously reducing their borrowings as they plan to raise approximately S$5.0 million in net proceeds from a new share placement.

According to a statement by MM2 Asia, the three investors include Hesheng Media, Apex Capital Group, and Maxi-Harvest Group.

The statement says the agreement entitles Hesheng Media to 1,270,325 new shares representing approximately 0.58% of the Company, Apex Capital will receive 2,540,650 new shares representing approximately 1.16% of the Company, and Maxi-Harvest will receive 2,540,650 new shares representing approximately 1.16% of the Company.

Meanwhile, MM2 Asia adds that the net proceeds will be used entirely for general working capital purposes.

“With enhanced financial resources, mm2 Asia can improve its cashflow and pursue acquisition opportunities as and when they arise,” the statement said.

“The Company recently completed the acquisition of Cathay Cineplexes Sdn Bhd’s business operations at two locations in Malaysia and announced a proposed acquisition of Mega Cinemas Management Sdn Bhd's three Mega Cineplex cinemas in northern Malaysia,” the statement added.