KUALA LUMPUR (July 23): Evergreen Max Cash Capital Bhd (KL:EMCC) said it has secured RM40 million in funding via the subscription of Islamic redeemable convertible preference shares (RCPS-i) to support the expansion of the group's Ar-Rahnu Tawarruq (Islamic pawnbroking) services.

Under an agreement signed on Wednesday, EMCC's wholly owned subsidiary Evergreen Cahaya Holdings Sdn Bhd will issue 40 million RCPS-i at RM1 per share to DPK Private Equity Sdn Bhd (DPKPE).

The RCPS-i carries a preferential dividend rate of 8.5% per annum, payable cumulatively from distributable profits, but non-compounding.

DPKPE will have the right to convert the RCPS-i into ordinary shares or request redemption at 1.6 times the total subscription price, less any dividends paid, upon maturity or in the event of default.

A put option also allows DPKPE to require EMCC to repurchase the RCPS-i or conversion shares within 90 days of specified trigger events, under agreed terms.

EMCC said the issuance will not impact its share capital or earnings per share but will increase total borrowings to RM152.84 million from RM112.84 million as at December 2024, raising the group’s gearing ratio to 0.64 times from 0.48 times.

EMCC shares closed half a sen or 1.7% lower at 29.5 sen on Wednesday, giving the company a market capitalisation of RM328.9 million.