Acrometa Group has entered into a sale and purchase agreement (SPA) with Altea LSI Asset Management Limited for the disposal of its 70% stake in Life Science Incubator Holdings (LSI).
Under the SPA, the disposal has a purchase consideration of $2.7 million. Upon completion, LSI will cease to be a subsidiary of the group.
The net proceeds from the disposal are expected to go towards the group’s general working capital purposes to cover the Acrometa 43F ’s operating expenses.
The group says that the disposal comes on the back of a review of the group’s financial position, operational needs, long-term strategy, and direction, as well as the business prospects of the LSI group.
Lawrence Toh, executive director of Acrometa, says: “We have determined that the Group's resources and management efforts would be better directed towards other potential business opportunities in mineral sands trading."
On a pro forma basis, had the disposal been completed at the end of FY2023 ended Sept 30, 2023, the group’s FY2023 net tangible asset (NTA) would have stood at a loss of $4.2 million, instead of a loss of $4.4 million. NTA per share would have stood at a loss of 1.51 cents, up from a loss of 1.59 cents.
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Had the acquisition been completed at the start of FY2023, the group’s loss would have stood at $6.7 million, instead of a loss of $$7 million. Loss per share would have stood at 2.9 cents instead of 2.99 cents.
Following the disposal, the group’s wholly-owned subsidiary, AcroMeta Minerals has entered into a non-binding memorandum of understanding (MOU) with Constance Holding to facilitate further collaboration in mineral sands trading.
Constance Holding, a Malaysia-based holding company, is currently involved in supplying sand for major land reclamation projects across major infrastructure developments in Malaysia, reads the release.
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The group says it “remains optimistic about the long-term prospects of AcroMeta Minerals, which are supported by strong demand and strategic local partnerships”.
It adds that with an “enhanced cash position” following the completion of the proposed disposal, the group is “well-positioned to continue exploring suitable new business opportunities that will create value for its shareholders”.
Shares in Acrometa Group closed flat at 2.9 cents on Oct 21.
