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Stocks to watch: Geo Energy, PACC Offshore, Y Ventures
THE following companies saw new developments that may affect trading of their shares on Monday:
Geo Energy Resources: Coal producer Geo Energy Resources has acquired a majority stake in two South Sumatra coal mines for US$25 million. The company will pay for the acquisition with its existing cash, comprising US$2.5 million for a refundable deposit payable upon execution of the purchase agreement, and US$22.5 million once the deal is completed, it said. The counter closed flat at 14.8 Singapore cents on Friday.
PACC Offshore Services Holdings (POSH): An event of default on a loan granted to POSH's joint venture has triggered a cross-default under a second loan facility by another lender to the joint venture. POSH had announced that the 50 per cent-owned joint venture POSH Terasea was in default on a US$27.6 million loan as at Sept 17. Following its filing to the Singapore Exchange on Sept 19, a second lender to POSH Terasea has declared that an event of cross default has occurred, said POSH in a regulatory filing on Sept 21. Cross default is a provision in a bond indenture or loan agreement that puts a borrower in default if the borrower defaults on another obligation. POSH shares were 1.5 Singapore cents or 12 per cent lower at 11 Singapore cents on Sept 20 when the market closed, while Ezion shares are under voluntary suspension.
Y Ventures: Catalist-listed Y Ventures said on Monday that it is placing 24.7 million new shares in the company at 8.12 Singapore cents each to raise around S$2 million. The placement price represents a discount of around 9.98 per cent from the counter's volume-weighted average price of 9.02 cents on Sept 17, the last full market day prior to the subscription date. The new shares also represent about 10.74 per cent of Y Venture's enlarged share capital. Following the placement, the group's issued and paid-up share capital will rise to 229.7 million shares from 205 million shares.