Asiasons Capital's major shareholders offer to inject fresh capital

Asiasons Capital's major shareholders are offering to inject additional capital into the battered private equity firm.

Two of the firm's directors and controlling shareholders Mr Jared Lim and Mr Ng Teck Wah have signed a legally-binding term sheet with Asiasons Capital to extend a $25 million convertible loan to the firm.

The agreement was inked with Deepvale Capital, a firm incorporated in the British Virgin Islands and wholly owned by the two directors, for the proposed loan facility, said Asiasons Capital in an announcement to the stock exchange Wednesday.

The bulk of the loan proceeds is meant to be used for private equity investments and working capital purposes. The loan is convertible into up to 100 million new Asiasons Capital shares at 25 cents apiece.

Asiasons Capital is one of three stocks which share price was beaten down early this month which led to the Singapore Stock Exchange to impose trading curbs on the counter. The other two were LionGold and Blumont.

The stock price has been volatile since the exchange lifted the curbs on October 21.

It closed at 15.6 cents on Tuesday and as at 2 pm was up 1.3 per cent to 16 cents.