Mineral oil and gas firm Infinio Group is intending to purchase a Kim Chuan Terrace property for $10.8 million.
Yesterday, Infinio said it had 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 fund raising and bank borrowings.
Last month, Infinio said it was seeking to raise $2.24 million through a proposed share placement of about 1.26 billion shares at 0.18 cent apiece. It intends to use up to 100 per cent of the placement proceeds for working capital purposes, of which it has re-allocated 25 per cent 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 last year, net asset value as of this date would have been $12.5 million.
The property comprises an industrial building located on a single freehold land lot with a land area of about 827 sq m.
Infinio said the proposed acquisition is part of its intention to diversify the business of the group into property development and related business. However, the deal will be subject to shareholders' approval at an extraordinary general meeting.
The board is also considering a new name for the company, deeming it "appropriate" for identification purposes. It will be discussed during the meeting.