SG briefs: Hatten Land, Ausgroup, Gallant Venture, Nam Cheong

Equipment for playing videogames. Photo by Ella Don on UnsplashEquipment for playing videogames. Photo by Ella Don on Unsplash

Singapore company briefs: Hatten Land, Ausgroup, Gallant Venture and Nam Cheong.

Hatten Land

Hatten Land said Wednesday it would issue around 121.95 million new shares at S$0.041 each — a discount of around 10 percent to the five-day volume-weighted average price through 8 April — in a placement to raise around S$5 million. The placement shares will represent around 6.57 percent of Hatten’s enlarged share capital, the company said in a filing to SGX.

The net proceeds will be used to fund new business initiatives, including the newly launched Element X, and for working capital, the filing said.

Element X will be a large-scale e-sports hub, metaverse “gateway,” and themed hotel, created by repurposing the Elements Mall in Melaka, Malaysia, Hatten Land said. The waterfront site for Element X will have 1.88 million square feet of retail space across 13 floors, aimed at attracting gamers, the filing said.

Ausgroup

Ausgroup said Wednesday its wholly owned subsidiary Ezion Offshore Logistics Hub (EOLH) has entered a non-binding term sheet to sell all of NT Port and Marine (NTPM) to Adroit Capital Group for A$39.33 million, or around S$40.12 million. The consideration consists of A$1 and the assumption by the purchaser of S$40.12 million in outstanding principal owed to noteholders, the company said in a filing to SGX.

“Since the acquisition of NTPM in 2014 it has continued to make losses, and it has placed a significant financial burden on the group to fund its operational losses and the debt associated with it when NTPM was acquired,” Ausgroup said.

The sale will reduce debt, significantly improving the group’s gearing position; reduce interest, improving the cash position and profitability; and remove a money-losing unit, ending the need to fund the losses from the rest of the group’s profits, Ausgroup said.

Gallant Venture

Gallant Venture issued a notice Wednesday of three consecutive years of losses.

SGX rules state than an issuer will be placed on the watchlist if it posts pre-tax losses for its most recent three financial years and has an average daily market capitalization of less than S$40 million over the last six months.

Gallant Venture said its latest six-month average daily market capitalization was S$701.03 million.

Nam Cheong

Nam Cheong‘s independent auditors issued a disclaimer of opinion on the company’s 2021 financial results, citing the suspension of the remaining 10 shipbuilding contracts awarded to the Non-Fujian Group Shipyards. As of end-2021, the aggregate contract sum was US$121.1 million, with the outstanding exposure at US$104.8 million, the auditors noted in the report filed to SGX.

“Management had represented that the group had reached an understanding without a written agreement with the Non-Fujian Group Shipyards to suspend construction or delivery of the vessels, with a view to extend the delivery period or terminate the contracts to minimise any financial exposure,” the auditors said.

“No independently verifiable supporting evidence was available to corroborate management’s representation that the balance sum of the contracts had not been incurred and all liabilities related to the contracts had been accounted for,” the auditors said.

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