Olive Tree Estates Limited: Update on Utilization of Share Placement Proceeds
Olive Tree Estates Limited Provides Update on Use of Placement Proceeds
Key Highlights
- Completion of Share Placement: Olive Tree Estates Limited (“the Company”) refers to its placement exercise completed on 23 December 2022.
- Total Net Proceeds Raised: The Company successfully raised a total of S\$6.881 million through the share placement.
- Utilisation Breakdown:
- Debt Servicing Requirements: S\$4.781 million allocated and fully utilized. This amount covered monthly principal amortization of bank loans and associated interest expenses.
- General Working Capital: S\$2.1 million allocated, with S\$1.017 million utilized to date. The remaining balance for working capital stands at S\$1.083 million.
- Consistent with Previous Disclosures: Utilization of proceeds is in line with the Company’s previously disclosed intentions in its announcements and circulars dated 25 August 2022 and 7 December 2022.
- Ongoing Disclosure Commitment: The Company has committed to making periodic announcements regarding any material disbursement or utilization of the remaining balance of the proceeds. Status reports will be included in both interim and full-year financial statements, as well as the annual report.
Important Shareholder Information
- Debt Reduction: The full utilization of funds for debt servicing may positively impact the Company’s financial position by reducing interest expenses and lowering leverage. This could improve future earnings and cash flows, potentially enhancing shareholder value.
- Remaining Working Capital: With S\$1.083 million still available for working capital, the Company retains flexibility for operational needs or strategic investments, which could contribute to future growth or stability.
- Transparency and Governance: The Company’s commitment to ongoing disclosure and reporting provides reassurance to shareholders regarding the responsible management of raised funds.
- Price Sensitivity: Investors may consider the reduction of debt and prudent use of capital as positive developments. However, the current announcement does not include new strategic initiatives, acquisitions, or material developments that would immediately affect the Company’s valuation or share price. Future announcements regarding the utilization of the remaining proceeds could have an impact depending on the nature of the expenditure.
- Regulatory Disclosure: The announcement has been reviewed by the Company’s sponsor, RHT Capital Pte. Ltd., but not by the Singapore Exchange Securities Trading Limited (SGX-ST). The Exchange does not assume responsibility for the content of the document.
Detailed Allocation Table
| Allocation of Net Proceeds |
Amount Utilized (S\$’000) |
Balance (S\$’000) |
| Debt Servicing Requirements |
4,781 |
0 |
| General Working Capital |
1,017 |
1,083 |
| Total |
5,798 |
1,083 |
Next Steps and Investor Watchlist
- Monitor future announcements for any material use of the remaining S\$1.083 million in working capital.
- Watch for updates in interim and annual financial reports for detailed status on proceeds utilization.
- Assess potential impact on share price should the Company announce new initiatives, investments, or strategic moves funded by the placement proceeds.
Management Statement
The update was issued by Mr. Long Chee Tim, Daniel, Chief Executive Officer and Executive Director, underscoring the Company’s ongoing commitment to transparency and responsible fiscal management.
Disclaimer
This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors are advised to conduct their own due diligence and consult with professional advisers. The information is based on the latest Company announcement and may be subject to change. The Singapore Exchange Securities Trading Limited has not reviewed or approved the contents of this summary.
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