SINGAPORE - Mineral oil and gas firm Infinio Group is intending to purchase a Kim Chuan Terrace property for S$10.8 million, with the board proposing a change of name for the company.
On Tuesday (Feb 13), Infinio said that it has been granted an option to purchase the property, and the purchase consideration will be satisfied fully in cash, through the net proceeds from a share placement that was completed and announced on Feb 1, and a combination of future equity fundraising and bank borrowings.
Last month, Infinio announced that it was seeking to raise S$2.24 million through a proposed share placement of some 1.26 billion shares at 0.18 Singapore cent apiece.
The company intends to use up to 100 per cent of the placement proceeds for working capital purposes, of which it has reallocated 25 per cent of the proceeds from working capital to finance part of the proposed acquisition.
If the acquisition, two share placements and an issuance of conversion shares had been completed by March 31, 2017, net asset value as at this date would have been S$12.5 million.
The property comprises an industrial building that is located on a single freehold land lot with a land area of about 827 square metres. It is being used as a machinery workshop and warehouse by Hup Heng Enterprise Company.
Infinio said that the proposed acquisition is part of the company's intention to diversify the business of the group into property development and related business.
However, the proposed deal will be subject to shareholders' approval at an extraordinary general meeting (EGM).
The board is also considering a new name for the company, deeming it "appropriate" for identification purposes. It will be discussed during the EGM.
Infinio closed unchanged at S$0.008 on Monday.