Catalist-listed Singapore eDevelopment (SeD) plans to place $7 million worth of new shares to CEO and largest shareholder Chan Heng Fai, to improve its balance sheet and working capital.
About $6.42 million of the $7 million in net proceeds will be used to redeem all $5 million worth of redeemable exchangeable notes including accrued interest payable and redemption premium.
SeD, via its unit, Singapore Construction & Development (previously known as CCM Property), had issued the notes on Feb 21, 2014. Apart from reducing gearing, the early redemption of the 18% notes will result in potential savings of $680,000 in interest and redemption premium assuming that the redemption takes place on or before June 30 this year.
To date, the Company has secured written consent for the early redemption from more than 51% of the note holders, who include Chan himself (who holds 14 of the 20 notes expiring on Feb 21, 2017).
The remaining net proceeds from the placement will be used for the company’s general working capital. SeD says the placement will improve the company’s balance sheet at a time when its US property projects are underway.
The company’s US real estate subsidiary recently completed the purchase of 197 acres of land, for Ballenger Run Project in Maryland – principally funded by a bridging loan of US$10.5 million from HBD.
The Ballenger Run Project and Black Oak Project, another land infrastructure development project in Texas, are the two real estate developments that currently form the core of SeD’s current main business activity.
In December, SeD announced that both projects had secured their requisite construction loans and are expected to start revenue recognition in FY2016.
Shares in SeD ended 16.7% lower at 2.5 cents on Monday.
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About $6.42 million of the $7 million in net proceeds will be used to redeem all $5 million worth of redeemable exchangeable notes including accrued interest payable and redemption premium.
SeD, via its unit, Singapore Construction & Development (previously known as CCM Property), had issued the notes on Feb 21, 2014. Apart from reducing gearing, the early redemption of the 18% notes will result in potential savings of $680,000 in interest and redemption premium assuming that the redemption takes place on or before June 30 this year.
To date, the Company has secured written consent for the early redemption from more than 51% of the note holders, who include Chan himself (who holds 14 of the 20 notes expiring on Feb 21, 2017).
The remaining net proceeds from the placement will be used for the company’s general working capital. SeD says the placement will improve the company’s balance sheet at a time when its US property projects are underway.
The company’s US real estate subsidiary recently completed the purchase of 197 acres of land, for Ballenger Run Project in Maryland – principally funded by a bridging loan of US$10.5 million from HBD.
The Ballenger Run Project and Black Oak Project, another land infrastructure development project in Texas, are the two real estate developments that currently form the core of SeD’s current main business activity.
In December, SeD announced that both projects had secured their requisite construction loans and are expected to start revenue recognition in FY2016.
Shares in SeD ended 16.7% lower at 2.5 cents on Monday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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