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Cypark Resources Bhd intends to raise up to RM73.36 million through a share placement, primarily for the working capital of the environmental solutions and renewable energy group.
According to Cypark’s filing with Bursa Malaysia, the placement includes up to 178.94 million new shares, representing up to 30% of the group’s issued shares.
Based on the filing, the group intends to raise RM72.43 million in the minimum level scenario and RM73.36 million in the maximum level scenario.
RM50 million of the RM73.36 million gross proceeds in the best-case scenario will be used as working capital for the development of the Large Scale Solar 2 floating solar PV projects, Danau Tok Uban in Kelantan.
Another RM22.865 million will be used to fund the cash flow for the waste disposal modular sophisticated recovery and treatment waste-to-energy (SMART WTE) plant in Ladang Tanah Merah, Negeri Sembilan, which will provide the group with recurring revenue from the sale of renewable energy electricity to Tenaga Nasional Bhd.
The use of the funds, according to Cypark, will broaden the group’s competitive advantage and strengthen its position as a contributor to government initiatives to increase renewable energy production, as demonstrated by the group’s solar projects and Malaysia’s first WTE plant.
Well, this usage of the funds, according to Cypark, will broaden the group’s competitive advantage and strengthen its position as a contributor to government initiatives to increase renewable energy production, as was demonstrated by the group’s LSS projects and Malaysia’s first WTE plant. Adding further Cypark says, “The group’s intention remains to further expand its green technology and renewable energy segment projects, as well as to secure more concessionaire and long-term income generating assets.”
Cypark finished a private placement of up to 20% of the overall number of shares issued in December, raising RM97.23 million in gross proceeds for the project costs of the solar power station facility and partial reimbursement of bank borrowings.