Synagie Corp launches S$0.10-a-share rights issue to fund 2020 growth plans

CATALIST-LISTED e-commerce solutions provider Synagie Corp plans to raise up to S$3.84 million in a rights issue to fund its expansion in 2020, the board said late on Friday night.

The renounceable non-underwritten rights issue of up to 39.7 million new shares, priced at S$0.10 apiece, will be done on the basis of three rights shares for every 20 ordinary shares at a books closure date that has yet to be determined.

The exercise is expected to yield net proceeds of between S$2.12 million and S$3.84 million, depending on whether more shareholders sign up besides those who have already pledged to do so.

But Synagie added that there is no minimum amount to be raised from the planned rights issue, as it will turn to alternative sources such as private placements if it cannot raise enough funds.

The group, which disclosed the rights issue in a filing entitled "Project Phoenix - Announcement", said that it would use the exercise to expand its business in the year ahead.

It pointed to its plans to roll out in Indonesia and to bring on brand partners in Malaysia, Thailand, the Philippines and Vietnam, as the company is a regional partner that provides e-commerce support services for industry giant Lazada's online marketplaces in South-east Asia.

One-third of the net proceeds will also be set aside to be used as working capital, Synagie said.

Executive directors Clement Lee, Tai Ho Yan and Zanetta Lee, who are also shareholders of the company, have made irrevocable undertakings to subscribe to new shares, as did investors Cindy Tai; Agate Investments, controlled by David Loh and Han Seng Juan; and Harmony Treasure Holdings, which is owned by Helen Chow, alias Helen Cheng.

Synagie shares closed up by 0.3 Singapore cent, or 2.21 per cent, at S$0.139, before the news.