Catalist-listed Metech International, through its joint venture company Asian Eco Technology (AET), has entered into a strategic collaboration agreement with Chinese firm Ningbo Meishan on Dec 24.
Under the agreement, Ningbo Meishan, which is backed by Chinese investment company Zongheng Capital, will provide funding of US$100 million ($136 million) for AET’s lab-grown diamond business activities through debt and/or equity financing.
According to a press release announcing the deal, the funding will be primarily used for the construction of AET’s lab-grown diamond manufacturing facilities in Singapore.
AET was established in September as a joint venture between Metech and X Diamond Capital.
In its press release, Metech states that it is currently preparing and is liaising with its sponsor to seek shareholders’ approval for the proposed business diversification of its core business to include the manufacturing and distribution of lab-grown diamonds and such other related activities at an extraordinary general meeting.
As at 10.03am, Metech shares are trading flat at 36 cents.
