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KUALA LUMPUR (July 23): MTouche Technology Bhd has proposed a private placement to raise up to RM18.06 million for the development of a new over the top (OTT) media platform.

Up to 777.6 million shares or 30% of the group's issued share capital will be issued to independent third-party investors to be identified later, the group said in a stock exchange filing. The proceeds expected to be raised are based on an indicative issue price of six sen per placement share. The actual issue price will be determined later.

On completion of the proposed placement, which is anticipated to be by the third quarter of 2020, the group said it intends to commence the development of the OTT media platform. The OTT media platform is estimated to take 15 months to be developed.

"Upon completion of the development of the OTT media platform, the group intends to initially roll out the platform in Malaysia, followed by subsequent roll-outs in Thailand, Indonesia, Vietnam and Hong Kong within 12 to 18 months from the date of development completion," it said.

At this juncture, it said the estimated cost to develop, market and operate the OTT media platform is approximately RM18.2 million.

MTouche, which is primarily involved in mobile messaging platform and mobile value-added services, narrowed its net loss to RM3.69 million for the third quarter ended June 30, 2020, from RM21.98 million a year ago, mainly because the previous year saw a large impairment loss of RM22.32 million provided on its financial assets. Its quarterly revenue, however, sank 76% to RM1.2 million from RM4.96 million, as it faced market saturation challenges in its core business.

MTouche's share price closed half a sen or 7.14% higher at 7.5 sen, valuing the group at RM58 million, after some 12.53 million shares were traded.

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