TRITECH Group is issuing 87.3 million new shares at 6.61 Singapore cents apiece, or S$5.8 million in total, to six parties to capitalise a loan and to settle an outstanding payment for a January acquisition, the engineering and marble production company said on Wednesday.
The proceeds will be used to capitalise a S$4.97 million unsecured, interest-free loan to Tritech Group from Tritech International Holdings Pte Ltd, which is undergoing voluntary liquidation. The shareholder loan has been used for working capital purposes.
Tritech Group also owes Tritech International S$800,000 for the former's January acquisition of a 54 per cent stake in Geosoft from the latter.
The subscribers of the placement are Tritech Group managing director Wang Xiaoning and executive director Cai Jungang; Loh Chang Kaan, chief executive of Tritech Group subsidiary Terratech Group; Tritech Group substantial shareholder Adonis Investment Holdings; and businesspeople Lee Sui Hee and Wang Hong.
The placement will not result in a change of control.