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Hot stock: Pine Capital share price doubles; becomes second most traded counter
SHARES of Catalist-listed Pine Capital saw a flurry of trading on Thursday morning as the stock price doubles to 0.2 Singapore cent following the completion of its proposed placement.
As at 10.56am, 38.45 million shares changed hands, making it the second most heavily traded counter by volume that morning after China Real Estate.
This follows the completion of the financial services group's proposed placement on Wednesday. Some 611 million placement shares were allotted and issued at S$0.0009 per placement share to three placees for S$550,000.
This increases the total issued share capital of the company to 5.1 million shares, from 4.46 million shares. The placement shares will rank pari passu in all respects with and carry all rights similar to the existing shares in the capital of the company, and are expected to be listed and quoted on or about Oct 22.
On Oct 10, Pine Capital had said in response to queries from the Singapore Exchange (SGX) over its plans for share settlement and share placement exercises that the group is able to continue as a going concern. It also said that net proceeds from the proposed placement "will increase resources available to the company to improve its cash flow, provide working capital for the company and enable it to settle the outstanding consideration" of S$326,721 in the proposed share settlement.
It also said then that the group will have about S$596,000 in available cash after the placement and settlement and believes that the sum can cover its estimated recurring expenses in the short to medium term.
The group also confirmed that the three placees Lee Peck Huat, Tan Sze Seng and Lei Tsen Siang do not have any connections to the company, its directors and/or substantial shareholders or anyone under Rule 812 of the SGX regulations.
In response to the SGX, the board had also said that it is confident that 51 per cent-owned Advance Capital Partners Asset Management can stay competitive in the short to medium term.