Pine Capital injects S$189,819 into key fund management subsidiary
CATALIST-listed investment firm Pine Capital has injected a further S$189,819 of cash into 51 per cent-owned subsidiary Advance Capital Partners Asset Management (ACPAM) to help the unit meet base capital requirements.
In order to maintain the existing shareholding structure in ACPAM, ACPAM allotted new shares valued at S$182,574 to ACPAM chief executive Tan Choon Wee, who holds the remaining 49 per cent of ACPAM. Mr Tan is also interim CEO and executive chairman of Pine Capital. The consideration for the ACPAM shares issued to Mr Tan were offset against S$182,500 of unpaid salaries owed by ACPAM to Mr Tan for the January to May 2018 period. Mr Tan paid the S$74 difference in cash to ACPAM.
Following the deals, ACPAM's issued and paid-up share capital will increase from S$806,117 to S$1.2 million.
Pine Capital paid for its additional investment using proceeds from its recent S$2.2 million stock placement that had been earmarked for general working capital purposes. Pine Capital said that additional investment will allow ACPAM, as Pine Capital's sole operating subsidiary, to remain in compliance with capital requirements for fund management companies. The balance of the unutilised placement proceeds is now about S$1.35 million
Pine Capital independent director Roy Ling is the only other director of ACPAM. He does not currently hold any equity stake in ACPAM or Pine Capital.
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