EMS Energy inks non-binding agreement with new investor Qian Investment Holding
Singapore
CATALIST-listed EMS Energy Limited said on Monday that it has entered into a non-binding term sheet with Qian Investment Holding to allot and issue to the investor some five billion new shares at 0.15 Singapore cents or S$7.5 million.
Subject to the completion of the proposed placement, the group will acquire the international sales and marketing of lubricant additives business of Qian Investment via an acquisition of shares and/or assets.
After the completion of this proposed placement, the group plans to undertake a rights issue of up to 6.173 billion new shares on the basis of one rights share for every one existing share at 0.15 Singapore cents per rights share.
EMS Energy also plans to issue up to 1.65 billion new shares at 0.15 Singapore cents apiece to Alternative Advisors Pte Ltd (AAPL) to pay for AAPL's fees of S$2.475 million for services rendered in relation to a debt restructuring exercise.
Following the issue of shares under the placement, rights issue and issuance to AAPL as well as an earlier scheme of arrangement with creditors, Qian Investment will hold about a 70 per cent stake in EMS Energy.
The group said its executive chairman and controlling shareholder Ting Teck Jin has agreed to maintain his current shareholding interest in the group and vote in favour of all resolutions to give effect to the transactions stated in the term sheet and the definitive agreement.
EMS Energy's latest announcement on Monday marked a positive turn for the group, which has been exploring fundraising exercises to strengthen its cash position.
The scheme of arrangement proposed by EMS Energy Solutions was approved by a majority in number representing at least 75 per cent in value of its creditors present and voting.
It has recently applied to the Singapore Exchange for a two-month extension until July 15, 2018 to announce its results for fiscal first-quarter 2018, after experiencing turnover of senior financial staff. This followed the sudden departure of its chief financial officer due to family reasons, leaving only two members in the finance team.
Shares of EMS Energy have been suspended from trading since September 2016.
