Sinjia Land said Saturday its acquisition target BINEX Singapore was in the process of securing third-party investors which may provide loans with the option to be exchanged for shares.
“The fund raising is for the purpose of raising working capital to fund the ongoing operations, including the first sorghum cultivation project in Peru,” Sinjia Land said in a filing to SGX Saturday in response to queries from SGX.
BINEX Singapore cultivates, harvests and sells sorghum, and makes biomethanol from sorghum, sells sorghum bio-pellets and buys and sells carbon credits derived from sorghum’s carbon dioxide absorption, the filing said.
The first project in Peru has secured an initial 5,000 hectares of land for planting sorghum in 2022, with an option for an additional 25,000 hectares in later years, Sinjia Land said, adding the project is expected to start generating revenue in late 2022 or early 2023.
Other plots are being examined in Australia and Brazil, with sizes ranging from 5,000 to 500,000 hectares within five years, the filing said.
Sorghum plants take around 16 weeks to mature into harvestable form, the company said.
Sinjia Land has entered a deal with BINEX, 3DOM, Biomass Energy Corp., Mebius and Future Science Research to acquire BINEX Singapore in a reverse takeover. In November, Sinjia Land had entered a non-binding term sheet for the acquisition.
The company said the exchangeable loans will not be converted into shares of Sinjia Land if the reverse takeover is not completed.
In addition, Sinjia Land noted its only current business operation is the backpackers hostel business, which it may consider divesting after the BINEX Singapore deal is completed so it can concentrate on the new core business.