JMT Announces a Capital Increase to Raise Funds for Quality-Project Investment

JMT Network Services Public Company Limited (JMT) has announced that the Board of Directors of the company approved an increase in registered capital to raise funds for investment in quality projects that generate returns.

 

On August 27, 2021, JMT has announced that the Board of Directors of the company approved the reduction of the Company’s registered capital in the amount of 179,730,305.00 baht from the original registered capital 787,150,286.00 baht as registered capital 607,419,981.00 baht by eliminating 359,460,610 unissued ordinary shares with a par value of 0.50 baht per share, which are shares that reserve the issuance of shares for private placement, which the allocation period has expired.

 

Afterward, the Board of Directors approved an increase in the company’s registered capital 155,788,711.00 baht from the original registered capital 607,419,981.00 baht as registered capital 763,208,692.00 baht by issuing 311,577,422 newly issued ordinary shares with a par value of 0.50 baht per share for (1) offering to the existing shareholders in proportion to their respective shareholdings (Rights Offering) (2) reserving for the exercise of rights to purchase ordinary shares under the warrants to purchase the company’s ordinary shares No. 4 (JMT-W4), which is allocated to the existing shareholders of the company who have subscribed and are received the allocation of the newly issued ordinary shares issued and offered to the existing shareholders in proportion (3) reserving for the exercise of rights of warrants under the JMT-W2, JMT-W3 and JMT-ESOP W1 projects that have been adjusted by the price adjustment and the exercise of rights. The allocation ratio will be in the range of 4.558 – 5.042 existing shares to 1 newly issued ordinary share with an offering price at THB41.50 per share.

 

JMT’s Board of Directors also approved the issuance and offering of warrants to purchase ordinary shares of the company No. 4 (JMT-W4) in the amount not exceeding 70,500,000 units without offering value to allocate to the existing shareholders of the company who subscribed and received the allocation of the newly issued ordinary shares issued and offered to the shareholders in the ratio of newly issued ordinary shares which such investors have subscribed and allocated 3.418 ordinary shares per 1 unit of JMT-W4 Warrants. In case that there is a fraction of the warrants remaining from the calculation according to the warrant allotment ratio, such fraction shall be rounded down. The exercise ratio under JMT-W4 Warrant is 1 unit of warrant per 1 ordinary share. JMT-W4 Warrant has a term of 3 years and has an exercise price of 90 baht per share (Except in the case that the exercise ratio has been adjusted according to the conditions for the adjustment of rights as specified in the terms of rights and obligations of the issuer of warrants JMT-W4).

 

JMT expected to raise funds in the amount of approximately THB 10,000 million from the capital increase. The company planned to use the proceeds received from this capital increase as an investment in quality projects that generate returns (e.g., procurement and management of distressed debts, where the borrower’s financial fundamentals are screened);  working capital, and used to repay the company’s debts.