KUALA LUMPUR (June 20): Mobile virtual network operator XOX Bhd has proposed a private placement of not more than 10% of its issued share capital to raise up to RM7.19 million to enhance its Nimbus application.

In a bourse filing on Tuesday (June 20), XOX said the shares will be issued to third party investors who will be identified later, and the issue price will also be determined at a later date.

For illustrative purposes, the indicative issue price of the placement shares is assumed at 1.3 sen per share, which represents a discount of 7.14% to the five-day volume-weighted average price of XOX shares up to the latest practicable date (May 31) of 1.4 sen.

Based on the 1.3 sen indicative price, the placement is expected to raise gross proceeds of up to RM6.57 million (minimum scenario) or up to RM7.19 million (maximum scenario),

The proceeds will be mainly utilised for the enhancement of the XOX Nimbus app.

“Barring any unforeseen circumstances, the proposed private placement is expected to be completed by the fourth quarter of 2023 (4QFY2023),” it said.

In a separate filing, XOX said its wholly-owned subsidiary, XOX Pro Sport Sdn Bhd, has entered into a memorandum of understanding (MOU) with Penang FC Sdn Bhd to explore a business collaboration between the parties, particularly in the scope of commercial activities, including sports marketing and management.

Penang FC owns the Penang football club, which represents Penang state in Malaysian football competitions.

Shares in XOX closed half a sen or 33.33% higher at two sen, giving the group a market capitalisation or RM101 million.