KUALA LUMPUR, Evergreen Max Cash Capital Bhd (EMCC) has secured RM40 million in funding through a share subscription agreement aimed at expanding its Ar-Rahnu Tawarruq (Islamic pawnbroking) services.
The funding will be raised via the issuance of 40 million Islamic Redeemable Convertible Preference Shares (RCPS-i) at RM1 each by EMCC’s wholly owned subsidiary, Evergreen Cahaya Holdings Sdn Bhd, to DPK Private Equity Sdn Bhd (DPKPE).
According to the agreement signed on Wednesday, the RCPS-i will carry a preferential dividend rate of 8.5% per annum, payable cumulatively from distributable profits, though non-compounding.
DPKPE will have the option to convert the RCPS-i into ordinary shares or redeem them at 1.6 times the total subscription amount, minus any dividends received, upon maturity or in the event of a default.
The agreement also includes a put option that allows DPKPE to require EMCC to repurchase the RCPS-i or conversion shares within 90 days of certain trigger events, under agreed conditions.
EMCC noted that the issuance will not dilute its share capital or impact earnings per share, but it will raise the company’s total borrowings from RM112.84 million to RM152.84 million as of December 2024, increasing its gearing ratio from 0.48 times to 0.64 times.
On Wednesday, EMCC shares closed half a sen lower at 29.5 sen, down 1.7%, bringing its market capitalisation to RM328.9 million.
