SINGAPORE -Catalist-listed EMS Energy Limited said on Monday (May 28) that it has entered into a non-binding term sheet with Qian Investment Holding to allot and issue to the investor some 5 billion new shares at 0.15 cents or $7.5 million.
Subject to the completion of the proposed placement, the group will acquire the international sales and marketing of lubricant additives business of Qian Investment via an acquisition of shares and/or assets.
After the completion of this proposed placement, the group plans to undertake a rights issue of up to 6.173 billion new shares on the basis of one rights share for every one existing share at 0.15 cents per rights share.
EMS Energy also plans to issue up to 1.65 billion new shares at 0.15 cents apiece to Alternative Advisors Pte Ltd (AAPL) to pay for AAPL's fees of $2.475 million for services rendered in relation to a debt restructuring exercise.
Following the issue of shares under the placement, rights issue and issuance to AAPL as well as an earlier scheme of arrangement with creditors, Qian Investment will hold about a 70 per cent stake in EMS Energy.
The group said its executive chairman and controlling shareholder Ting Teck Jin has agreed to maintain his current shareholding interest in the group and vote in favour of all resolutions to give effect to the transactions stated in the term sheet and the definitive agreement.