DGate ... Sept09

It has proposed a private placement of 191.84 million new Dreamgate shares to raise RM32.09 million.

The proposed corporate exercise entailed the issuance of new Dreamgate shares of up to 20% of the current paid-up share capital. Based on the five-day average price up to Aug 26 of 18.59 sen and applying an assumed discount of 10%, the illustrative placement price is 16.73 sen.

Based on this illustrative issue price, the placement exercise would raise about RM32.095 million. The funds would be used for planned capital expenditure of its existing businesses, repayment of loan taken for capital expenditure (if any), and working capital.