KUCHING: AIZO Group Bhd (formerly known as Minetech Resources Bhd) has fixed the second tranche of its private placement at RM0.122 per placement share.
The issue price represents a discount of approximately RM0.013 or 9.63 per cent from the 5-day volume weighted average market price (VWAMP) of AIZO shares from October 9 to 15, 2024, being the market day immediately preceding to the price-fixing day of approximately RM0.135 per AIZO share, the company said in a filing with Bursa Malaysia.
The first tranche of the private placement involved the issuance of 26,770,300 placement shares priced at RM0.125 each which were listed on Bursa Malaysia on October 11, 2024.
AIZO has proposed to undertake private placement of up to 10 per cent of the company’s total issued shares or up to 178,469,000 new shares at the minimum scenario.
Based on an indicative price of RM0.131 per placement share, the fund-raising exercise could raise up to RM23.379 million (minimum scenario) and RM30.663 (maximum scenario).
If the minimum amount is raise, the company plans to utilise RM15 million within 24 months to fund its construction projects, RM2.5 million for repayment of borrowings, RM2 million for capital expenditure of financial technology division, RM1.5 million for capital expenditure of bituminous products division, RM1 million for operating expenditure of renewable energy division and RM759,000 for working capital.
Since the beginning of 2024, AIZO had renewed/secured three construction projects — Selinsing gold mine, M Nova and Banting Industry City projects — with contract value amounting to RM250.15 million.
In another development, AIZO has on October 16,2024 entered into a memorandum of understanding (MoU) with NetRunner Sdn Bhd to form a joint collaboration for the establishment of a Tier 4 data centre hub in Sarawak (project).
NetRunner is principally engaged in businesses relating to operation of generation facilities that produce electric energy, solar energy and all related business, computer programming activities, computer consultancy, information technology and all related business and investment holdings.
“The parties agree to cooperate, collaborate and facilitate further discussions between the parties which includes the sharing of relevant information on a confidential basis between the parties with the aim of identifying the needs and capabilities of both parties to fulfil their respective commitments relating to the project and any other forms of cooperating relating to the project which the parties may mutually decide in writing, from time to time.
“The parties shall carry out the objective of the MoU, subject to the availability of financial and human resources of the parties.
“The parties expressly agree that this MoU shall be valid for two years from the date of signing (initial term). The parties may, at any time during the initial term, by mutual agreement in writing, extend the MoU for any further period(s) as they deem necessary. Notwithstanding anything in this MoU, either party that intends to terminate this MoU shall give at least one month written notice to the other party.
“This MoU may be amended or modified only by mutual written agreement of the parties. Any amendments thereto shall be documented and signed by authorised representatives of each party.
“The parties recognise that this MoU serves as a framework for collaboration and understanding, outlining the parties’ intentions and mutual expectations and is not intended to and does not create any legally binding rights or obligations between the parties (formal agreement),” said AIZO.
According to the company, the risk factors involved in the MoU at this juncture is minimal and in the event the company enters into a definite agreement on the implementation of the joint collaboration, the management of AIZO group would put in place adequate control measures and proper operational procedures to ensure the successful implementation of the development with its current business operations.
AZIO’s executive directors Ahmad Rahizal Dato Ahmad Rasidi and Emma Yazmeen Yip Mohd Jeffrey Yip are interested parties in the MoU as both of them are directors and shareholders of NetRunner.
“Accordingly, they haver abstained and will continue to abstain from all deliberations and voting at board meetings of the company in respect of this joint collaboration,” said AIZO.
