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Accrelist offsets outstanding loans to Jubilee against its entitlement for rights and warrants issue

ACCRELIST, the parent company of Catalist-listed precision manufacturer Jubilee Industries Holdings, has agreed on Tuesday to offset an outstanding loan of S$10.9 million owed to it by Jubilee.

The loans will be offset against the cost of Accrelist's S$9.8 million entitlement (21.8 million shares) under Jubilee's proposed rights cum warrants issue first announced on Oct 12.

This leaves an outstanding amount of S$1.1 million exclusive of accrued interest still owed to Accrelist under a direct loan agreement.

However, the excess sum may be offset by Accrelist's subscription for the excess rights shares with warrants in the event none of the other entitled shareholders chooses to subscribe, Jubilee said in an after-market filing with the Singapore Exchange.

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The new estimated net proceeds will be approximately S$5.2 million in the maximum subscription scenario and S$4.4 million in the minimum subscription scenario, it added.

Jubilee intends to use 40 per cent of the net proceeds on general working capital and 30 per cent each on merger and acquisition activities, and machine capacity expansion.

If fully subscribed, the rights cum warrants issue will see Jubilee raise S$15.03 million - with shareholders offered one rights share with one detachable warrant for every two shares held.

Jubilee shares finished S$0.002 or 4.2 per cent lower at S$0.046 on Tuesday.