On behalf of the Board of Directors of Karex Berhad, CIMB Investment Bank Berhad is pleased to announce that, based on the 40,500,000 Placement Shares which were successfully placed to identified placees at the issue price of RM3.90 per Placement Share, the gross proceeds to be raised of RM158.0 million from the Proposed Private Placement will be utilised as follows:
Details of utilisation |
Amount (RM million) |
Estimated timeframe for utilisation from completion of the Proposed Private Placement |
Development and business expansion of Karex |
110.0 (1) |
12 months |
Working capital |
44.5 (2) |
12 months |
Estimated expenses in relation to the Proposals |
3.5 (3) |
Upon completion of the Proposals |
Total |
158.0 |
|
Notes:
(1) Karex is still in the midst of exploring various business expansion opportunities which will be announced if and as and when Karex enters into any such agreement. However, in the event such business expansion opportunities do not crystallise within the expected timeframe, Karex is expected to utilise the proceeds raised for working capital requirements.
(2) The utilisation of proceeds raised for working capital is expected to include but is not limited to marketing expenses to distribute ONE® brand products in South East Asia, cash cycle such as the purchase of raw materials, financing of trade debtors and to maintain stock levels for plant expansion in Hatyai, Thailand. As Karex is expanding its existing business, Karex envisages an increase to its on-going operating and administrative expenses in order to cater for the increase in sales. This will enable Karex to conduct its operations without being overly dependent on external borrowings.
(3) The estimated expenses consist of professional fees, fees payable to authorities and other expenses relating to the Proposals. If the actual expenses related to the Proposals are lower than the estimated amount, the excess will be allocated to working capital, and vice versa.
This announcement is dated 2 March 2015.
Created by ss20_20 | Mar 12, 2015