Hatten Land to raise US$20 million in convertible loan

HATTEN Land on Friday said it has entered into a convertible loan agreement with Haitong International Financial Products (Singapore) and Tan June Teng Colin, under which Haitong has agreed to extend a convertible loan of US$20 million.

Mr Tan, the company's executive chairman and managing director, will provide a personal guarantee.

Hatten Land said most of the loan proceeds will likely be used for the completion of the Hatten City Projects, and other development projects undertaken by the developer.

The lender will have the right, at any time during the loan tenure, to convert the full sum of the loan or any part thereof which is outstanding, into new ordinary shares, based on a fixed conversion price of S$0.35 per share.

Hatten said it is unable to ascertain the maximum number of conversion shares which may be issued, but using some assumptions for illustrative purposes, a loan amount of S$27 million could result in a maximum of about 77.1 million conversion shares issued.

As at the date of the agreement, the company has about 1.4 billion ordinary shares in issue. The 77.1 million conversion shares will represent about 5.3 per cent of the enlarged share capital of the company.

The conversion price of S$0.35 also represents a premium of about 79.1 per cent to the volume weighted average price for trades done on Sept 19, 2017.