SINGAPORE (July 8): Tritech Group has raised $1 million from a private placement of 34.5 million new shares at 2.9 cents each to four individuals on Saturday.

The net proceeds of $0.95 million will be used for working capital purposes.

The placement price represents a discount of 5.8% to the volume weighted market price of 3.08 cents for each share, based on the trades done Friday.

The shares also represent 3.65% of the enlarged share capital of the company.

In April, Tritech Group announced it was selling Presscrete Engineering, an indirect subsidiary, to Lim Wen Heng Construction to meet its working capital requirements.

Tritech says the investors who were introduced through the introducer Tan Chin Tuan.

They have expressed interest to invest in the company and agreed to subscribe for the placement shares for personal investment purposes.

Ng Siew Kee and Goh Jee Mui subscribed to 12.1 million shares for a total of $0.35 million in total each, giving them a 1.28% stake in the company.

Seah Siu Guat and Tan Ming Boon each subscribed to 5.2 million shares for a total of $0.15 million each, giving them a 0.55% stake.

Ng and Goh are insurance agency and sales directors respectively while Seah is an insurance agent and Tan is a deputy manager. They previously have no shares in Tritech.

Introducer Tan is an agency sales manager and holds 59,800 shares. He will be paid a fee in $70,000 or 7% of the consideration, which shall be satisfied by the issue of 2.4 million new shares which raises his stake to 0.27% in the company.

Tritech’s subsidiary, Tritech Engineering & Testing (Singapore), was awarded a $7.13 million contract by the Public Utilities Board (PUB). This was followed by a $16.9 million contract to provide instrumentation and monitoring works to the Land Transport Authority (LTA) in May.