KUALA LUMPUR (Sept 12): Tech firm Green Packet Bhd (KL:GPACKET) said on Thursday that four of the six investors expected to subscribe to its private placement of over 598 million shares have withdrawn from the exercise.

The four subscribers — Dr Prem Kumar, Roberto Guiati, Chan Yok Peng and Ler Pei Fen — who were collectively supposed to subscribe to 490 million shares, have mutually agreed to terminate their subscription agreements, as detailed in separate letters dated September 12, 2024, Green Packet said in a bourse filing.

However, Green Packet said that the subscription agreements with Chow Dai Ying and Tay Guat Eng still subsist and remain in effect, without providing further details on the proposal.

To recap, Green Packet announced on April 30 that it would undertake a private placement of 598.48 million shares, representing 30% of its issued shares at 3.2 sen per share, totalling approximately RM19.15 million.

The placement was initially set to be subscribed by the six individuals under agreements with Green Packet.

It is not clear whether Green Packet is still going to place out 598.48 million shares, now that the four subscribers have terminated their agreements.

Funds from the placement were intended to support its joint venture with the Sri Lankan government on an integrated tourism digital platform (RM10 million), a money lending business (RM6 million) and working capital (RM2.86 million).

The company reported a net loss of RM7.47 million for the first quarter ending June 30, 2024 (1QFY2025), compared to a net profit of RM6.25 million the previous year. This is despite a 9% increase in revenue to RM176.24 million from RM162.05 million in 1QFY2024.

Green Packet’s shares closed unchanged at three sen on Thursday, giving it a market capitalisation of RM60.1 million.