December 22 (SeeNews) - Malaysian biogas firm Green & Smart Holdings Plc (LON:GSH) said Tuesday it has pocketed MYR 6 million (USD 1.34m/EUR 1.29m) by issuing new ordinary shares to existing shareholder Malaysian Technology Development Corporation Sdn Bhd (MTDC).
The renewable energy company generates power from biogas captured through the treatment of palm oil mill effluent (POME). It will use the proceeds as additional working capital for the development of its project pipeline.
“This investment, together with recently announced news of becoming an Independent Power Producer as the Kahang biogas plant became fully operational at headline capacity exporting energy to the national grid, puts the Group on a firm footing from which to build in order to achieve its ambition to be a major player in the renewable energy sector,” managing director, Saravanan Rasaratnam, said.
MTDC subscribed for 6 million redeemable convertible preference shares (RCPS) of MYR 1.0 each in the company’s wholly-owned subsidiary Green & Smart Sdn Bhd. Following the issue, the RCPS were converted into about 10.8 million new ordinary shares in the company through a share swap agreement. Upon their admission, MTDC will hold 6.78% of the enlarged issued share capital of the Green & Smart Holdings.
MTDC is wholly-owned by the sovereign wealth fund of the government of Malaysia. It was established to promote and support the commercialisation of technology in the country.
(MYR 1.0 = USD 0.223/EUR 0.215)