WATER and environment company Tritech Group : 5G9 0% on Friday (Mar 25) said it agreed to place out up to 742.2 million new ordinary shares worth S$33.8 million, in cash, to several new strategic investors.

Under the proposed placement, the first tranche of 166.7 million placement shares will be placed out via the company's general share issue mandate to Qatar-based company Protocol Capital and introducers Jackie Ng, Stephanie Tan and Roads Holding.

The issue price of S$0.03 for the first tranche represents a 66.7 per cent premium to its volume-weighted average price (VWAP) of shares traded on the company's last full market day of Mar 21.

Transactions involving 575.5 million placement shares under the second tranche will be subject to shareholder approval at an extraordinary general meeting to be convened.

Some 287.75 million of second-tranche placement shares will result in a transfer of controlling interest to one of the strategic investors, Protocol Capital. The remaining 287.75 million second-tranche placement shares will be collectively allotted and issued to introducers.

Tritech said the second tranche issue price of S$0.05 represents a 177.8 per cent premium to its VWAP of shares traded on the company's last full market day.

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Separately, Tritech announced it has also entered into joint agreements with the same parties - Protocol Capital, Ng, Tan and Roads Holding - to collaborate on several projects involving the group's fish farming technology, its existing membrane business, as well as its Vavie brand of products.

The group and its new strategic investors further intend to identify, invest in as well as manage new businesses and assets in the water treatment and water supply market in Asia by establishing a fund, which will be managed by a special purpose vehicle that is majority-owned by Protocol Capital.

All collaboration agreements are expected to take effect 1 year from Mar 22 and are not inter-conditional.

Protocol Capital will invest up to US$475 million under the proposed collaborations. 

For illustrative purposes, the proposed collaborations would bring the group's net tangible assets (NTA) per share for FY2021 to 1.09 Singapore cents as opposed to an NTA of 0.89 cent, assuming completion on Mar 31, 2021.

Loss per share (LPS) for the fiscal year would have been 0.27 cent compared to the LPS of 0.48 cent.

Shares of Catalist-listed Tritech last closed flat at S$0.018 on Mar 21 before the group called for a trading halt the following day. Its shares will resume trading on Friday.