VCI Global Announces Closing of $2.75 Million Public Offering
- None.
- The offering may lead to shareholder dilution due to the issuance of additional ordinary shares and warrants.
Insights
The closing of VCI Global Limited's public offering is a strategic move aimed at raising capital for various business initiatives. With the gross proceeds of approximately $2.75 million, the company's decision to allocate funds across client IPO investments, strategic acquisitions, financing initiatives, R&D and team expansion indicates a multi-faceted growth strategy. The distribution of funds suggests a balanced approach to both short-term and long-term business objectives, with a significant portion dedicated to potential revenue-generating activities like client IPOs and acquisitions.
Investors should note the immediate exercisability of the Series Warrants, which could potentially lead to dilution of the current share base if exercised, affecting the stock price. However, the structured expiration periods of the Series A and B Warrants may provide a staggered impact on the market, possibly reducing the risk of sudden dilution. The exercise price at $1.25 per share sets a reference point for the company's valuation in the eyes of the investors.
The allocation of proceeds towards technology R&D and team expansion by VCI Global Limited reflects a commitment to innovation and human capital, which are crucial for maintaining a competitive edge in today's market. The emphasis on R&D may enhance the company's product offerings and could lead to new revenue streams in the future. This strategic positioning may appeal to investors looking for companies with a forward-looking approach.
Additionally, the involvement of StockBlock Securities LLC as the exclusive placement agent lends credibility to the offering and could influence investor perception positively. The use of a prospectus for the offering provides transparency and ensures regulatory compliance, which is reassuring for stakeholders concerned with corporate governance practices.
The mention of the offering being made only by means of a prospectus and the adherence to SEC regulations underscores the importance of legal compliance in public offerings. It is crucial for investors to understand that the offering's legality hinges on the registration statement and the effectiveness of the prospectus. The clear statement that the press release is not an offer to sell securities is a standard disclaimer to prevent any misinterpretation of the communication as an informal offer, which is a common practice to mitigate legal risks.
KUALA LUMPUR, Malaysia, Jan. 18, 2024 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, or the “Company”) today announced the closing of its previously announced public offering of 2,200,000 the Company’s ordinary shares and accompanying Series A warrants to purchase up to 2,200,000 ordinary shares (“Series A Warrants”) and Series B warrants to purchase up to 2,200,000 ordinary shares (“Series B Warrants”, together with Series A Warrants, collectively the “Series Warrants”) at a combined offering price of
StockBlock Securities LLC acted as the exclusive placement agent for the offering.
The gross proceeds to the Company from the offering were approximately
The securities described above were offered pursuant to a registration statement on Form F-1 (File No. 333-275239) originally filed with the Securities and Exchange Commission (“SEC”) on October 31, 2023, as amended, and became effective on January 11, 2024. The offering was made only by means of a prospectus, which forms a part of the effective registration statement. Electronic copies of the final prospectus may be obtained for free on the SEC’s website located at http://www.sec.gov and may also be obtained by contacting StockBlock Securities LLC at 600 Lexington Avenue, 32nd Floor, New York, New York 10022, by phone at 212-540-4440 or e-mail at notices@stockblock.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About VCI Global Limited
VCI Global is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. The Company provides business and boardroom strategy services, investor relation services, initial public offering, marketing, real estate consultancy and technology consultancy services. Its clients range from small-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries. VCI Global operates solely in Malaysia, with clients predominantly from Malaysia, but also serves some clients from China, Singapore, and the US.
For more information on the Company, please log on to https://v-capital.co/.
Forward-Looking Statements:
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business, the intended use of proceeds from the offering, and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, market and other conditions, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
Issued by Imej Jiwa Communications Sdn Bhd on behalf of VCI Global Limited
For media queries, please contact:
Imej Jiwa Communications Sdn Bhd
Chris Chuah
chris@imejjiwa.com
FAQ
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