Thursday, September 17, 2015

Sunpower in placement agreement to raise $56 mil

Sunpower Group, the China-based manufacturer of heat exchanges and pressure vessels, said on Wednesday it has entered into a placement agreement of up to 400 million shares with Stirling Coleman Capital to procure subscribers at an issue price of 14 cents each.

The placement is expected to raise gross proceeds of up to $56 million.

Sunpower Business Group (SBGPL) and Tournan Trading (TTPL) have indicated their interest to the placement agent to subscribe for up to 100 million placement shares or 25% of the total placement shares each.

SBGPL and TTPL are wholly owned by associate companies Allgreat Pacific and Claremont Consultancy respectively, which are in turn wholly owned by executive directors Guo Hong Xin and Ma Ming respectively.

The proposed allotment and issue of placement shares therefore constitute interested person transactions and the placement shares are subject to a lock-up period of six months.

A special general meeting will also be convened to seek shareholders approval for the transactions.

Sunpower last closed at 19.4 cents.

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