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Cacola takes S$1m convertible loan from Chinese investor
CACOLA Furniture International has taken a S$1 million five-year, 6 per cent convertible loan from Chinese businessman Ge Jian Ming to fund acquisitions, the furniture maker announced on Monday before the market opened.
If fully converted into Cacola shares at the initial conversion price of 0.684 Singapore cent per share, the conversion shares will represent 17.1 per cent of Cacola's enlarged share capital. The initial conversion price is a 2.3 per cent discount to Cacola's closing price of 0.7 Singapore cent on Friday.
Mr Ge is "investing in the company for investment purposes only and has no intention of influencing the management of, or exercising control over, the company", Cacola said. The investor will not hold 15 per cent or more of the company's shares without shareholder approval.
Cacola is currently on the Singapore Exchange's watch list for failing to meet profitability and market capitalisation thresholds. The company must raise either or both of its earnings and market capitalisation by March 2016 or face potential delisting.