GEAR completes placement, to use proceeds for working capital
Saturday, December 10 2016 - 05:26 AM WIB
SGX-listed Golden Energy and Resources Limited (GEAR) announced that its proposed placement of up to 182,980,298 shares (Proposed Placement) at S$0.67 each has been fully subscribed.
As has been previously reported, the proposed placement comprises of up to 181,000,000 shares (Placement Shares) for the purpose of meeting the Shareholding Spread and Distribution Requirements and 1,980,298 Shares (Deloitte Shares) pursuant to the Placement to Deloitte.
?Following the book building exercise undertaken by RHB Securities Singapore Pte. Ltd. (placement agent) in relation to the placement shares, the board of directors of the company is pleased to announce that the proposed placement of 181,000,000 shares has been fully subscribed. Together with the Placement to Deloitte, an aggregate of 182,980,298 shares were allotted and issued on 9 December 2016, in satisfaction of the Shareholding Spread and Distribution Requirements,? Golden Energy said in a statement Friday.
On November 28, 2016, the company announced that approximately S$15,608,000 (or 12.9%) of the gross proceeds from the Proposed Placement will be allocated for general working capital purposes.
In connection with the Proposed Placement, the company and the Placement Agent have, on December 8, agreed to revise certain terms of the Placement Agreement which will result in an increase of approximately S$885,000 in net proceeds raised by the company. The company said it will allocate such amount for general working capital purposes, which will result in an increase in the proceeds from the Proposed Placement for general working capital purposes to an aggregate amount of approximately of S$16,493,000 (or 13.6% of the total gross proceeds).
GEAR said that to demonstrate PT Dian Swastatika Sentosa Tbk?s (DSS) commitment to the company, DSS has undertaken not to sell transfer, or otherwise dispose of or cause the sale, transfer or otherwise dispose of any of the DSS Consideration Shares and DSS Compensation Shares (as applicable) to which they are entitled (being an aggregate of 2,044,145,469 Shares) until June 12, 2017 and at least 50 percent of the DSS Consideration Shares and DSS Compensation Shares (as applicable) (adjusted for any bonus issue or subdivision) until December 12, 2017.
As previously announced, the company issued S$45,499,173 in aggregate principal amount of 5 percent bonds convertible into Shares (Mandatory Convertible Bonds) to the UFS Unsecured Creditors on February 13, 2015, which were converted to 48,689,607 Shares on April 20, 2015. Each UFS Unsecured Creditor has undertaken to the company that it shall not, and shall procure that any person to whom the Conversion Shares are issued shall not, sell or otherwise transfer any such Conversion Shares during the period commencing from the date of issuance of the Conversion Shares, until the day following completion of the Proposed Placement.
Editing by Reiner Simanjuntak