TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
33
Corporate Governance Report
Use of Proceeds from Rights Issue
On 25 August 2014, the Company issued 78,400,000 new ordinary shares in the issued and paid-up share capital of the
Company pursuant to a renounceable and non-underwritten rights issue of up to 78,400,000 new ordinary shares (“
Rights
Shares
”) in the issued share capital of the Company (“
Rights Issue
”) at an issue price of S$0.12 for each Rights Share on the
basis of two (2) Rights Shares for every five (5) existing shares then held by shareholders as based on the terms and conditions
of the Offer Information Statement dated 29 July 2014 issued by the Company. Net proceeds of S$9.3 million were raised from
the Rights Issue.
As announced by the Company in its announcements dated 1 October 2014 and 25 August 2015, the net proceeds raised from
the Rights Issue have been utilized by way of grant of loans amounting to S$6.0 million to a wholly owned subsidiary to provide
additional working capital to repay its trade owings and monthly bank indebtedness as well as to finance the set-up of one
outlet and renovation of two existing outlets in Singapore. Usage of the net proceeds raised from the Rights Issue is consistent
with the intended use as disclosed in the Offer Information Statement dated 29 July 2014.
The unutilised net proceeds from Rights Issue approximates S$3.3 million as of 31 March 2016.
Sponsorship
The Company is currently under the SGX-ST Catalist sponsor-supervised regime. The continuing sponsor of the Company
during FY16 is SAC Capital Private Limited (the “
Sponsor
”). There is no non-sponsor fee paid to the Sponsor.
