KUALA LUMPUR (June 30): Tiles manufacturer and information technology company YB Ventures Bhd has received resounding approval from its shareholders to raise RM48.5 million from a proposed issuance of irredeemable convertible unsecured loan stocks (ICULS).
At the company’s EGM held today, it received 99.99% approval from shareholders who voted on the resolution.
Executive director Au Yee Boon said in a statement that with the proceeds to be raised, YB Ventures will be fully equipped to implement its strategic plan and capitalise on the recovery of its operating markets.
“We have decided to embark on this funding option as it enables the group to raise funds without incurring high interest costs compared to borrowings from financial institutions, where the 0.1% annual coupon payment on the nominal value of the ICULS is much lower than the base lending rate of financial institutions,” he added.
The proposed rights issue of up to 1.21 billion ICULS is on the basis of five ICULS at RM0.04 each for every one ordinary share in YB Ventures.
Chairman Tan Sri Ali Hamsa said YB Ventures intended to utilise most of the proceeds raised to upgrade existing production lines and construct four new production lines, amounting to RM45.6 million.
YB Ventures’ existing manufacturing facilities comprise eight production lines, with a production capacity of approximately 7.12 million square metres of ceramic, homogenous and porcelain tiles annually.
