Continue reading this on our app for a better experience

Open in App
Home News Company in the news

Mooreast takes out $20 million convertible loan

The Edge Singapore
The Edge Singapore  • 2 min read
Mooreast takes out $20 million convertible loan
Photo: Albert Chua
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Mooreast Holdings plans to take out a convertible loan of just over $20 million from a fund managed by N PrimePartners Capital.

Under terms of the loan, which is yet definitive, Mooreast will first receive $1 million. The remaining $19.01 million is to be disbursed by the investor within 30 days' notice issued by Mooreast.

An interest rate of 3.7% per annum will apply and the loan will mature in 3 years.

Mooreast, which specialises in providing anchoring systems for offshore floating platforms, says that repayment will be triggered if it makes an annual comprehensive profit after tax of $12 million before the maturity date.

When so, Mooreast can repay by issuing conversion shares. Rather unusually so for convertible loans, the conversion price is set at 29 cents, which is a premium of 180% over the volume-weighted average price of 10.36 cents as at May 31.

Mooreast explains that it is beneficial to raise financing via a convertible loan given its current financial position.

See also: Yoma CEO Melvyn Pun regularly in contact with father Serge; company unaware of specific matters inquired

The company plans to use the loan for working capital to finance its expansion and growth across markets such as Southeast Asia, Europe and China. 

Most recently on April 2, the company announced it has won a contract to supply its anchors to an offshore floating wind farm project in France.

Mooreast shares closed at 11 cents on June 13, up 5.71% for the day but down from its Nov 2021 IPO price of 22 cents.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.