Beverly JCG Ltd. to Strengthen Capital Base with Strategic Share Subscription

Beverly JCG Ltd., a company incorporated in Singapore, has announced a subscription agreement with investor Lim Beoy Kee. The agreement involves the issuance of 24,691,358 new ordinary shares at S\$0.0081 per share, totaling S\$200,000 in gross proceeds. This move aims to strengthen the company’s financial position and capital base, potentially impacting its share value.

Key Details of the Subscription

• The subscription agreement was signed on 4 December 2024.
• The shares will be issued under the general share issue mandate approved on 29 April 2024.
• The subscription is not underwritten and will proceed under a private placement exemption, with no prospectus issued.
• The subscription price represents a 10% discount to the volume-weighted average price of S\$0.0090 per share as of the agreement date.

Financial Implications and Shareholder Concerns

The financial effects of this subscription are significant for Beverly JCG Ltd. The issuance will not result in a change of control but is expected to improve the company’s net tangible assets. Current shareholders should note:

• The consolidated NTA per share will improve from (0.302) cents to (0.260) cents.
• The loss per share is expected to decrease from 0.443 cents to 0.423 cents, assuming the subscription was completed at the start of the financial year.

Use of Proceeds

The net proceeds from the subscription, approximately S\$200,000, will be allocated as follows:

• 10% (S\$20,000) for business growth and exploration of new opportunities.
• 90% (S\$180,000) for working capital, including manpower, compliance costs, and administrative expenses.

The company will keep investors informed on the utilization of these funds, with updates provided in annual reports and announcements.

Director’s Assurance

The directors have assured that the group has sufficient working capital for its current needs, with or without the subscription. However, the additional funds will further bolster the company’s financial stability.

Trading Caution

Shareholders are advised to exercise caution when trading shares, as there is no certainty that the proposed share issuance will be completed without changes. Further announcements will be made as necessary.

Conclusion

This strategic move by Beverly JCG Ltd. is aimed at enhancing its financial footing and providing the group with the capital necessary for future growth and stability. While the subscription price offers a discount, the long-term benefits could positively influence shareholder value.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

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