KUALA LUMPUR: Mobile telecommunications products and services provider, XOX Bhd
has proposed to issue 250 million new shares to Macquarie Bank Ltd to finance its expansion of its Voopee mobile application.
The ACE Market company said on Thursday the proposed share issuance would represent 42.03% of its current issued and paid-up share capital. After the issuance, the shares will represent 29.59% of the enlarged paid-up share capital.
It said issuance of the shares of 10 sen each is the most appropriate avenue of fund raising as it enables XOX to raise additional funds without having to incur interest expenses or service principal repayments as with conventional bank borrowings or the issuance of debt securities.
“This would allow XOX to preserve cash flow for reinvestment and/or operational purposes; and is an expeditious way of raising funds from the capital market as compared to other forms of fund raising such as a rights issue exercise,” it said.
Macquarie Bank has expressed it does not have any intention to seek the nomination of any person to the Board or the removal or replacement of any person from the Board or to participate in the management or decision making of the Company
XOX said there was significant growth potential in its Voopee mobile application, in Malaysia and in surrounding regions.
Voopee is a mobile application that allows smartphone users to have an additional local area mobile number without the need for an additional SIM card.
XOX said the proposed share issuance is the most appropriate avenue of fund raising as it enables XOX to raise additional funds without having to incur interest expenses or service principal repayments as with conventional bank borrowings or the issuance of debt securities.
This would allow XOX to preserve cash flow for reinvestment and/or operational purposes; and is an expeditious way of raising funds from the capital market as compared to other forms of fund raising such as a rights issue exercise.
“The board sees significant growth potential in Voopee, including possible expansion into the Philippines, Thailand, Indonesia and to other countries in the Asean region
There are approximately 147,000 Voopee subscribers in Malaysia to-date. Voopee also offers voice, text and rich media messaging services through cellular data and/or WiFi connections. Currently, Voopee is available only in Malaysia.
The Voopee mobile application is not limited to XOX subscribers. Its key features are an additional number for free effectively offering two mobile numbers on the same phone, doing away with the need to have two smart phones, or to switch to a dual-sim phone.
Voopee offers the ability to make and receive voice calls with high clarity to mobile and/or landlines for 10 sen minute, and to other Voopee users for free, making the call rate competitive with domestic call charges in the market. This presents a more affordable solution to high roaming premiums for frequent travellers.
As the additional number is attached to the Voopee application, a Voopee user will still be contactable via the additional number when abroad, even though he/she swaps the originating country mobile SIM card to an international mobile network operator SIM card in the destination country;
Voopee also offers the benefits of easy top up credit for phone calls and text message, and to transfer airtime credit to other users.
The Voopee mobile application is not limited to XOX subscribers. Its key features are an additional number for free effectively offering two mobile numbers on the same phone, doing away with the need to have two smart phones, or to switch to a dual-sim phone.
Voopee offers the ability to make and receive voice calls with high clarity to mobile and/or landlines for 10 sen minute, and to other Voopee users for free, making the call rate competitive with domestic call charges in the market. This presents a more affordable solution to high roaming premiums for frequent travellers.
As the additional number is attached to the Voopee application, a Voopee user will still be contactable via the additional number when abroad, even though he/she swaps the originating country mobile SIM card to an international mobile network operator SIM card in the destination country;
Voopee also offers the benefits of easy top up credit for phone calls and text message, and to transfer airtime credit to other users.
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