Redemption of Convertible Debt Securities to Better Financial Position for Cinema Business Expansion
MM Connect Pte. Ltd. (“MM Connect”, a wholly-owned subsidiary of mm2 Asia Ltd. “mm2 Asia”, the “Group”), has offered to make early redemption to the holders of its convertible debt securities, as part of the Group's strategy to optimise financing options for the Group’s planned expansion of its cinema operations.
MM Connect had issued S$93,040,000 in convertible notes and convertible bonds in July 2017. As certain cinema acquisitions had not proceeded to completion, the Group had decided to offer to redeem the convertible securities, pending any further acquisitions to expand its cinema business..
Executive Chairman of the Group, Mr. Melvin Ang said: “We remain fully committed to our plan to enlarge our cinema business through MM Connect. Going forward, we want to open up new financing options for our subsequent expansion in the cinema business. To this end, I would like to express my deepest gratitude to our convertible security holders for their understanding and acceptance of our early redemption terms, and for their support as we move forward with our plans.”
The Group, through its cinema business in Malaysia- mm2 Screen Management Sdn. Bhd. (a wholly-owned subsidiary of MM Connect) and under the name mmCineplexes, is now the 4th largest cinema operator in Malaysia after completing the acquisition of 13 Lotus Fivestar Cinemas, owning a total of 18 cinemas with a market share of about 14% in terms of number of screens. Between FY2016 and FY2017, cinema revenue increased 2.6 times, from S$4.9 million to S$12.6 million.
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Note to media: Please read this press release in conjunction with the Company’s announcement released on SGXnet on the same date, which can be found here.