KUALA LUMPUR: Evergreen Cahaya Holdings Sdn Bhd, a wholly owned subsidiary of Evergreen Max Cash Capital Bhd
, has entered into a subscription agreement with DPK Private Equity Sdn Bhd to raise RM40 million.
In a Bursa Malaysia filing, Evergreen Max Cash said that under the deal, DPK Private Equity will subscribe to 40 million Islamic Redeemable Convertible Preference Shares (RCPS-i) at RM1 per share.
It said the proceeds raised will be utilised as cash capital to fund the operations of Ar-Rahnu Tawarruq services of Evergreen Cahaya and its identified subsidiaries.
"In particular, the gross proceeds raised will be channelled towards the disbursement of pawn loans through the Ar-Rahnu Tawarruq services outlets of the Evergreen Cahaya group as part of its ongoing efforts to expand and scale its Islamic pawnbroking operations in line with growing demand for Islamic pawn loans.
"Pending the utilisation of proceeds arising from the issuance of RCPS-i for the above purpose, the proceeds would be placed in Shariah-approved investments in accordance with the terms of the subscription agreement,” it said.
Furthermore, Evergreen Max Cash said the issuance of RCPS-i allowed it to maintain its equity interest in Evergreen Cahaya while managing the dilutive impacts, as the issuance of new ordinary shares in Evergreen Cahaya would have resulted in a direct dilution of its shareholdings.
"The dilution impact to Evergreen Max Cash’s shareholding in Evergreen Cahaya will be on a progressive basis as and when the RCPS-i are converted into new ordinary shares in Evergreen Cahaya in accordance with the terms of the subscription agreement,” it said. - Bernama
