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Lereno Bio-Chem sets EGM to vote on Knit Textile acquisition in RTO deal

CASH company Lereno Bio-Chem late on Friday said that it will hold an extraordinary general meeting (EGM) at Suntec Convention & Exhibition Centre on Jan 18, 2019, 10am for shareholders to vote on its acquisition of Knit Textile and Apparel for S$26.4 million.

In relation to that, shareholders will also vote on allowing the directors to allot and issue 142 million new consolidated shares in the company at S$0.20 each to fund the acquisition, and other items such as a whitewash resolution, allotment of settlement shares to Bin Tai Holdings, a 20-to-one share consolidation, and the appointment of directors, a general share issue mandate to allow directors more power to issue shares, a proposed capital reduction, and a change in company name to KTMG Limited.

This is part of the company's third reverse takeover (RTO) attempt - this time with Knit Textile and Apparel, a private company which is engaged primarily in the business of contract manufacturing of apparels, specialising in manufacturing of nightwear, lounge wear, casual wear and plus sizes apparels in Malaysia and Cambodia, and is in the process of expanding upstream into the knitting, dyeing, printing and finishing of fabric.

Lereno Bio-Chem said it has applied to the Singapore Exchange to list up to 169.7 million new shares and has received the green light, subject to conditions.

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The company has been a cash company since Nov 17, 2015.