Nextnation Communications Bhd is eyeing to acquire part of a 5.9-acre freehold vacant enterprise land in Cyberjaya for RM18.52 million, which will be settled by cash.

According to a report, the land will be used for the construction of office space and facilities such as research and development labs, data centre, as well as an incubation campus for in-house usage. The project has a gross development value of between RM400 million and RM500 million, and it will be partly sold and/or leased to third parties.

The company will also apply for a bonus issue of 45.74 million free warrants and a private placement of up to 30 percent of its paid-up and issued capital.

Shares of ACE Market-listed Nextnation were put on hold from 2.30pm to 5.00pm last Wednesday, due to this announcement.

The private placement could raise gross proceeds of RM15.49 million if 137.21 million shares are bought at a price of 11.3 sen per share, which is the five-day average market price of the shares.

Of the gross proceeds, around RM4 million will be used for the land acquisition, RM10 million to partly fund its capital expenditure and RM1.19 million for working capital, while the remainder are allocated for expenses associated with the proposed bonus issue and private placement.

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