SunMoon Food Company Limited, a global distributor and marketer of nutritious fresh fruits, vegetables and products, announced last week that it has signed a binding term sheet, with respect to an intended investment by Shanghai YIGUO E-commerce Co. Ltd (“Yiguo”), a leading fresh food ecommerce player in China.
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.
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.
Yiguo's dominant e-commerce position in China would also allow SunMoon to expand its footprint in the China marketplace, as well as increase SunMoon’s supply sources rapidly. SunMoon can tap into Yiguo’s suppliers and increase its range of fruit products. Gary Loh, Executive Chairman and CEO of SunMoon Food Company Limited, said: “The Yiguo deal is a major milestone in our restructuring effort to rebuild the company. It affirms our NxGxP business model and brand value. With the fresh funds, we would be able to focus on the company’s growth, with immediate access to Yiguo’s wide distribution network in China, strong capabilities in fresh food online operations and cold chain management.” Loh is also the Executive Chairman of First Alverstone Capital Limited (“FACL”) and the Yiguo deal is a breakthrough for FACL, the current major shareholder of SunMoon.
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
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