KUALA LUMPUR: Cworks Systems Bhd, which received a query from Bursa Malaysia Securities on the surge in its share price, plans to raise RM4.96mil by undertaking a private placement of up to 10% of its paid-up capital to independent party investor(s) to be identified.
In a filing with the exchange on Tuesday, the loss-making provider of maintenance management software said it planned to utilise about RM4.81mil of the total proceeds to develop a new software system for stock maintenance.
“The expenses in relation to the development of the system would include acquisition of new software and hardware, operations and administrative expenses, including, but not limited to staff salaries and marketing expenses and the employment of outsourced programmers to script, code and programme the said software system,” it said.
It said the estimated proceeds from the placement of 12.1 million shares were based on the indicative issue price of 41 sen each. The actual proceeds will depend on the final issue price and actual number of placement shares issued.
“The proposed private placement will enable the Company to raise the necessary funds to further expand its existing operations without incurring additional interest costs associated with bank borrowings or the issuance of debt instruments.
“By capitalising on the recent up-trend of the company’s share price, the proposed private placement will also strengthen the capital base of Cworks to support the continuous business growth of its subsidiaries,” it said.
In response to Bursa Securities’ query on the surge in its share price earlier in the day, Cworks said that except for the private placement announcement, the company and its board were unaware of any reason for the unusual market activity.
Its share price has more than doubled from 25.5 sen at the close on Dec 1 last year to 53 sen on Tuesday. On Tuesday, its price rose 3 sen from the previous day, with 9.463 million shares changing hands.
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