SINGAPORE: Anchor Resources Limited Group, a Malaysian operator of gold mine and dimension stone granite quarry and architectural stone and interior fit-out service provider, is pleased to announce that the Group has entered into a subscription agreement with Advance Opportunities Fund (AOF) and Advance Opportunities Fund I (AOF I) in connection with the proposed issue of 1% unsecured redeemable equity-linked notes due 2022 to the Subscribers.
[the_ad id=”32940″]The Notes have an aggregate principal amount of up to S$10 million and will be issued in three tranches. Anchor Resources Limited Group will be able to raise total net proceeds of approximately S$9.29 million through the issuance and intend to use up to 68% of the net proceeds to repay all of the Group’s outstanding bonds when due while the balance will be used to defray issue expenses and fund the Group’s general working capital.
Notably, the first tranche of the Notes with a principal amount of S$3.0 million will be drawn down in one single tranche and the net proceeds of approximately S$2.405 million will be used to repay the existing guaranteed non-convertible bonds maturing on 3 April 2019.
The subscription of Tranche 2 RELN and Tranche 3 RELN are at the Company’s option.
Due in 2022, the Notes bear interest rate of 1% interest per annum and is payable semi-annually. The Notes may be converted into shares of the Company at 10% discount to the VWAP per ordinary shares in the Company for the business day preceding the date of the Company’s receipt of the conversion notice.
Lim Chiau Woei, Managing Director of Anchor Resources, commented, “We are on the path of turning around where our gold and granite business segments are progressing well. The financing will allow the Group to fully repay its outstanding bonds as well as provide fresh funding to finance working capital for our gold mining, granite stone mining and aggregates quarrying businesses. This exercise is timely as it will reduce the Group’s finance costs as well as bolster the Group’s cash flow.”