KUALA LUMPUR (Dec 24): Cuscapi Bhd has proposed a private placement of 10% of its issued shares to raise up to RM22.34 million for its business expansion and working capital.
The restaurant management and business management solutions provider said it plans to place out 85.93 million new shares to third party investors to be identified at a later date, at an indicative price of 26 sen apiece.
From the expected gross proceeds of RM22.34 million, RM11.16 million will go towards payments to trade creditors, administrative expenses, staff costs, and office related expenses, the group said in a bourse filing.
Another RM11 million will be set aside for future business expansion opportunities, including for the acquisition of assets which may complement the group’s existing ICT related businesses, and for the expansion of its existing restaurant management solutions business.
Cuscapi said the private placement will enable the group to raise proceeds for funding, as the recent year has been challenging for the food and beverages industry due to the Covid-19 pandemic.
The exercise is expected to be completed by the first quarter of 2022.
Cuscapi’s shares closed unchanged at 29 sen, giving the group a market capitalisation of RM244.74 million. The stock has soared 123% year to date from 13 sen.