The proposed investment by Yiguo will help SunMoon to fast-track its expansion plan, based on its “Network x Geography x Product” (“NxGxP”) strategy, and to further cement SunMoon as a global distributor and marketer of branded high quality fruits and food products. With funding of S$24 million and greater access into China via Yiguo, SunMoon would be able to leverage on Yiguo’s network, infrastructure and logistic strengths to further its B2B channels and B2C ambitions.
In 2007, FACL stepped in as an investor after the global fruit trader ran into problems. At the time, FACL had recognized the brand value of the company and Loh pumped in funds to rescue SunMoon.
Over the years, FACL has provided SunMoon with the management expertise to transform the company, putting in place a strong business model after restructuring its debt and injecting capital.
Under the binding term sheet, SunMoon will place out 333.3 million new shares at 4.5 cents per share with free warrants to Yiguo on the basis of one warrant for every two placement shares subscribed. Each warrant shall carry the right to subscribe for one new share at the exercise price of 5.4 cents apiece.
The proposed placement to Yiguo would represent a 51% stake in the enlarged share capital of the company post-placement. As such, the company will apply to the Securities Industry Council for a whitewash waiver from the requirement to make a general offer. The deal would be subject to shareholders’ approval. Upon completion, the company would have a total fund of close to S$30 million, including the fresh funds from the placement and warrant exercise, enabling the company to execute its brand strategy.
For more information:
Jacqueline Lim / Ms Angeline Cheong
Mobile: +65 9695 9318 / +65 9666 0977
Email: jacqueline@waterbrooks.com.sg / angeline@waterbrooks.com.sg
www.waterbrooks.sg