01/12/2014 - 15:34

VDM taps investors, strengthens balance sheet

01/12/2014 - 15:34

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Dongyi Hua-led VDM Group is looking to strengthen its balance sheet by signing a share placement agreement with a private investor to raise $3 million.

VDM chief executive Dongyi Hua. Photo: Attila Csaszar

Dongyi Hua-led VDM Group is looking to strengthen its balance sheet by signing a share placement agreement with a private investor to raise $3 million.

In a statement today, VDM said it would place 250 million of its shares to the sophisticated private investor at a price of 1.2 cents per share.

The company also announced one of VDM’s major shareholders, China-based Australia Kengkong Investments, has increased its stake in the company to 45 per cent after converting $14.5 million worth of loans into shares.

VDM will issue 1.45 billion shares to Kengkong at a price of 1 cent per share.

“The VDM board is very pleased that Kengkong is exercising its conversion rights,” the company said in a statement.

“The conversion of the loans into shares significantly strengthens VDM’s balance sheet and capacity for growth.”

Shares in VDM were 11.1 per cent higher at 1 cent per share at the close of trade. 

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