Pine Capital posts slimmer Q3 loss, negative working capital; plans to raise funds

SINGAPORE - Pine Capital Group reported a narrower loss in its fiscal third quarter and a negative working capital position, and said that it its looking at fund-raising options.

Pine, which was formerly called OLS Enterprise, posted a net loss of S$926,000 for the three months ended Dec 31, 2017 compared to a year-ago S$1.5 million loss. With about 3 billion issued shares during the period, that represented a per-share loss of about 0.03 Singapore cent for the quarter. For the nine months to December, loss attributable to shareholders was S$1.8 million from a loss of S$2.1 million a year earlier.

The company, which had no revenue a year ago, recorded S$452,000 of revenue during the quarter. All of that came from newly acquired 51 per cent subsidiary Advance Capital Partners Asset Management, the investment firm that specialises in convertible financing for high-risk companies. Advance Capital has provided financing for a number of companies via so-called "toxic convertibles", a structure that can be highly dilutive for shareholders of the borrowers.

The company has net current liabilities of S$1.9 million as at end-December, from net current assets of S$3.1 million on March 31, 2017.

"The group is exploring various fund raising options in order to strengthen and improve the group's financial position," the company said in its report. "An announcement on the funds raising matter will be made as and when appropriate."

Looking ahead, Pine said that it plans to grow and expand its financial services sector to bolster the group's financial performance.

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