General Capital Limited (NZX:GEN) has announced the signing of two written subscription agreements to issue new shares.

The first placement is to API No 1 Limited Partnership of 86,956,522 new Ordinary Shares at an issue price of NZ$0.0575 per share, representing a total subscription price of $5 million and a shareholding of approximately 23.9%.

The second placement is to existing shareholder Borneo Capital Ltd of 63,960,957 new Ordinary Shares also at an issue price of NZ$0.0575 per share, restoring Borneo to their previous shareholding level of approximately 35.0%.

Both agreements are subject to necessary shareholder approvals and completion of other procedural matters, as well as the appointment of an additional non-executive director to the board of General Capital and its subsidiary General Finance Limited.

General Capital will use the capital raised to increase the capital of its subsidiary and pursue other opportunities for growth.

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