Tee International to hold an EGM to seek shareholders' go-ahead to first consolidate its shares, and then, undertake a rights issue.
According to the company on April 2, it plans to consolidate its share base at a ratio of 50 into 1, believing that the consolidated book value and share price will make it more attractive to the market.
Next, with irrevocable undertaking from its controlling shareholder, Tramore Global, which holds a stake of 53.4%, Tee International plans to launch a rights issue to raise net proceeds of around $3.36 million.
For every two consolidated shares, Tee International shareholders can subscribe for 13 rights shares.
According to Tee International, funds raised from the rights issue would be used for working capital and to fund growth of the business in new areas.
In addition, Tee International on Feb 27 has received an extension from SGX to put forward a trading resumption proposal. Its shares have been suspended since June 2021, last changing hands at 3.2 cents.
