HG Metal’s business associates to snap up S$22.5 million new shares

Strong belief in HG Metal’s future prospects fuels demand

 

Singapore, 10 July 2009 – Mainboard-listed HG Metal Manufacturing Limited (“HG Metal” or “The

Group”), one of the largest steel stockists in Singapore and Southeast Asia has entered into 11 separate

subscription agreements (the “subscription agreements” and each, a “subscription agreement”) to allot

and issue an aggregate of 225,000,000 new ordinary shares (“new shares”) in the capital of the Group to

the subscribers (as defined below). The total consideration would amount to S$22.5 million. When

completed, the subscription will increase the existing issued share capital of HG Metal from S$89.5 million

comprising 550,671,962 shares to S$112.0 million comprising 775,671,962 shares.

“We are honored by the confidence which these long-term investors have in our business. With

the subscribers being mostly business associates, they are familiar with our business model and

are positive on the long term growth prospects of HG Metal.”

Mr Wee Piew, CEO of HG Metal

The subscribers have agreed to subscribe and pay for the new shares at the price of S$0.10 for each new

share (“subscription price”) in the proportions and for the consideration (“consideration”) as set out

against their names below (each a “subscriber” and collectively the “subscribers”):

Subscriber Number of New

Shares

Total Consideration

(S$)

1. Hock Lian Seng Investment Pte Ltd ("HLS") 70,000,000 7,000,000.00

2. Lingco Holdings Pte Ltd ("LCH") 30,000,000 3,000,000.00

3. Chong Thim Pheng 50,000,000 5,000,000.00

4. Ong King Sin 20,000,000 2,000,000.00

5. Chow Bon Tong 10,000,000 1,000,000.00

6. Chua Kian Lin 5,000,000 500,000.00

7. Ang Kian Lee 5,000,000 500,000.00

8. Tan Bock Huat 10,000,000 1,000,000.00

9. Teo Choon Hock 5,000,000 500,000.00

10. Yap Xi Ming 10,000,000 1,000,000.00

11. Tan Wai See 10,000,000 1,000,000.00

TOTAL: 225,000,000 22,500,000.00