KUALA LUMPUR (July 26): Techna-X Bhd, formerly Sino Hua-An International Bhd, has proposed a private placement to raise up to RM24.05 million to fund new information technology (IT) contracts and orders, including a RM50 million project it is in the midst of bidding for to supply IT equipment and management system for a local enforcement agency.

In a Bursa filing, Techna-X said the private placement entails an issuance of up to 664.41 million new shares — 30% of its existing issued share capital — to independent investors and at an issue price to be both determined at a later date.

It is also planning a bonus issue of free warrants, on the basis of one warrant for every two Techna-X shares (one-for-two) held on an entitlement date to be fixed, that will involve the issuance of 2.16 million warrants.

The RM24.05 million maximum proceeds are based on an illustrative price of 3.62 sen apiece — a discount of 6.7% of the five-day volume-weighted average market price of Techna-X shares up to and including July 22.

Techna-X said it plans to use RM16.5 million to fund new IT contracts and orders, and RM7.05 million for research and development, sales and marketing, and business development of ultra-capacitor products. The balance RM500,000 will be used to defray the exercise's estimated expenses.

Techna-X said that a portion of the RM7.05 million allocation for ultra-capacitor products will also go towards expanding its market reach to ASEAN, Europe, and the Middle East.

Shares in Techna-X ended unchanged at four sen, giving the company a market capitalisation of RM88.59 million.