MAINBOARD-LISTED Manhattan Resources is proposing a debt conversion and share issue exercise that would hand a 61.9 per cent stake in the enlarged share capital of the firm to two creditors, both of which are entities owned by chief executive Low Yi Ngo and his family members.
Manhattan would then issue a maximum of 1.9 billion conversion shares to ERI and Kaiyi, representing 61.9 per cent of the firm's enlarged share capital, or 163 per cent of its existing issued share capital.The S$0.02 conversion price represents the weighted average price for trades done on June 17. Post-conversion, ERI would own 27.8 per cent of Manhattan, while Kaiyi would own 34.1 per cent.
"The proposed debt conversion would… ease the Group's cash flow as the obligation to repay the participating debts via cash will be settled via the issuance of conversion shares, so that the group's cash can be used for other purposes. This will strengthen the Group's balance sheet and improve its debt-equity position," Manhattan said.
Separately, as at June 21, Kaiyi has disbursed US$8 million out of the US$15 million interest-free loan it has extended to Manhattan, under loan agreements in December 2018 and March 2019. Kaiyi is set to disburse the remaining US$7 million to Manhattan in two tranches in September and December this year.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »