Adventus Holdings Limited Announces Full Utilisation of Placement Proceeds

Key Highlights

• Adventus Holdings Limited has fully utilised the net proceeds of S\$1,482,745 raised from the placement of 855,000,000 new ordinary shares at S\$0.0018 per share.
• The funds have been allocated in accordance with previously stated intentions, supporting the Group’s liquidity, operational requirements, and property enhancement initiatives.
• This update provides full transparency on the deployment of funds, a point likely to be of significant interest to shareholders and investors monitoring the company’s financial health and strategic priorities.

Detailed Breakdown of Proceeds Utilisation

Further Details on Fund Allocation

• Repayment of Bank Obligations: The largest portion of the proceeds (S\$654,509, or 44%) was directed toward reducing the company’s bank obligations. This move strengthens the balance sheet and reduces interest expenses, which can positively impact future earnings and cash flow.
• General Working Capital: S\$414,838 (28%) was allocated to general working capital. This included staff salaries (approximately 16% of the net proceeds) and administrative expenses (approximately 12%). The working capital injection supports the Group’s ongoing operations and financial stability.
• Property Enhancement Costs: S\$413,398 (28%) was used for property enhancement. This may indicate ongoing investments in the Group’s asset base, potentially improving asset values and rental yields or operational efficiency.

Important Information for Shareholders

• Full Utilisation of Proceeds: All funds raised from the placement have now been fully utilised. There are no remaining unallocated proceeds. This transparency may provide comfort to investors but also means there is currently no buffer from these funds for future deployments.
• Balance Sheet Impact: The substantial reduction of bank obligations could improve the company’s debt profile, lower financial risk, and may support a re-rating if the market had previously factored in higher leverage.
• Operational Funding: The allocation to working capital and property enhancement signals a focus on maintaining operations and investing in the business, which may be crucial for the company’s long-term growth prospects.
• Shareholder Communication: The company’s proactive update and compliance with disclosure requirements, including oversight by its sponsor (SAC Capital Private Limited), may be seen as a positive for governance and transparency.

Potential Price Sensitivity

• This announcement provides clarity on the company’s capital management and investment priorities. The reduction in bank obligations and ongoing investment in business operations could be viewed positively by investors and may influence the share price, especially in terms of perceived financial stability and growth outlook.
• However, with all proceeds fully utilised, investors may now look to management’s next steps and operational performance as future drivers of value.

Contact & Governance

The announcement was prepared by the company and reviewed by its sponsor, SAC Capital Private Limited. Shareholders with queries may contact Ms. Charmian Lim at SAC Capital (Tel: (65) 6232 3210) for further clarification.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. The information is based on the company’s announcement and is not independently verified. Investors are advised to conduct their own due diligence or consult with a professional advisor before making any investment decisions. The Singapore Exchange Securities Trading Limited has not examined or approved the contents of this announcement and assumes no responsibility for its accuracy.

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