SINGAPORE (April 5): OKH Global, the developer of industrial and logistic properties, is issuing 500 million new shares at 10 cents each to Haiyi Holdings to raise $50 million.

As part of the subscription agreement, Haiyi will also extend to OKH a $10 million loan to be used for working capital and partial repayment of redeemable convertible preference shares.

Haiyi is an investment holding company and controls SingHaiyi Group which is listed on the Catalist Board with a market capitalisation of $300 million.

OKH intends to use the $10.7 million of the proceeds as repayment for the loan and interest accrued. The balance of $39 million will be used for repayment of existing loans and interest and general working capital.

The subscription price of 10 cents represents a discount of 21.9% to the volume weighted average price of 12.8 cents for trades done on Monday.

The new shares will represent 43% of the enlarged share capital of the company when completed.

In order to undertake the subscription, the company is proposing to undertake a capital reorganisation exercise to reduce the par value of its shares from US$0.16 to US$0.01.

Both the subscription agreement and the capital reorganisation are subject to the approval of shareholders.