SINGAPORE - Catalist-listed Pine Capital has injected $66,895 into its 51 per cent-owned subsidiary, Advance Capital Partners Asset Management (ACPAM), by subscribing for 277 new shares at $241.50 per share.
This is so that ACPAM, as a registered fund management company, can maintain the level of base capital required by the Monetary Authority of Singapore, the investment firm said in a bourse filing late on Wednesday (April 3). Pine Capital's board has noted that the unit's urgent need for a capital injection was due to, among other things, an increase in ACPAM's expenses.
In addition to Pine Capital's share subscription, ACPAM executive director and CEO Tan Choon Wee has also subscribed for 266 new ACPAM shares at the same issue price of $241.50 per share, totalling $64,239, to capitalise his contribution.
After the share subscription, ACPAM's issued and paid-up share capital will increase from $1.2 million to $1.3 million, comprising 7,820 shares. Pine Capital will hold 51 per cent of ACPAM's enlarged share capital, while Mr Tan holds the remaining 49 per cent.
Pine Capital's board also emphasised that without its written consent, ACPAM should not be spending more money, including funds from this capital injection, that would result in ACPAM not meeting the base capital requirement in the future.
"The shareholders of Pine Capital should note that whilst the company has proceeded with the subscription in view of the urgency in meeting the base capital requirement, the company has also requested more information to be provided in connection with the subscription," it said.
The capital injection was funded from the proceeds of Pine Capital's 799 million share placement announced in November 2018.
Pine Capital shares have been suspended since March 21.