Posted by sensonic > 2019-03-22 22:35 | Report Abuse

NetX makes cash call of up to RM15.37m to fund lifestyle app TheEdge Wed, Jan 16, 2019 - 2 months ago KUALA LUMPUR (Jan 16): NetX Holdings Bhd is aiming to raise up to RM15.37 million via a private placement to develop and market its lifestyle-focused GEM app. The private placement represents some 30% of the group’s enlarged total number of shares at an illustrated offer price of 1.78 sen per placement share, NetX said in a stock exchange filing today. The group will use RM6 million to develop the app, with the remainder of funds raised to be used as its marketing costs, while RM300,000 will be used to cover the expenses of the proposed private placement. GEM, which stands for “Great Experiences Matter”, will enable users to make reservations and bookings for restaurants, entertainment outlets and events. It will also include transportation, social media and customer loyalty features, NetX said. “The group intends to leverage on its existing experience, technologies and infrastructures in the mobile payment segment to venture into the mobile application space,” the systems integration and hardware solutions provider said. NetX said that it expects the private placement to contribute positively towards the group’s future earnings “Subject to all relevant approvals being obtained, the proposed private placement is expected to be completed by the first half of 2019,” the group said. After considering various methods of fundraising, NetX’s board opined that this fundraising exercise is “the most appropriate at this juncture as it would enable the group to raise additional funds expeditiously without having to incur interest costs or service principal repayments,” it added. NetX previously raised cash from its shareholders via a private placement in April 2018, securing RM6.61 million to fund a collaboration project under its 60%-owned Payallz Sdn Bhd. Shares in the group last closed unchanged at 2 sen, giving the group a market capitalisation of RM56.01 million.