SG Capital Public Company Limited (SET: SGC) has announced the Board of Directors decision to propose to the Extraordinary General Meeting of Shareholders to consider a capital increase.
The board approved to propose to the Extraordinary General Meeting of Shareholders to consider and approve an increase in the company’s registered capital 5,232,000,000 Baht from the original registered capital at 3,270,000,000 Baht to the new registered capital at 8,502,000,000 Baht by issuing 5,232,000,000 newly issued ordinary shares with a par value of 1.00 Baht per share.
The newly issued shares are for (1) offering to the existing shareholders in proportion to their respective shareholdings (2) reserving for the exercise if rights to purchase ordinary shares under the warrants to purchase the company’s ordinary shares No. 1 (SGC-W1), which is allocated to the existing shareholders of the company in proportion to their shareholding at a ratio of 5 : 1 for free and a term of 1 year (3) reserving for the exercise if rights to purchase ordinary shares under the warrants to purchase the company’s ordinary shares No. 2 (SGC-W2), which is allocated to the existing shareholders of the company who have subscribed and are received the allocation of the newly issued ordinary shares issued and offered to the existing shareholders in proportion to their shareholding at a ratio of 2.5 : 1 for free and a term of 3 years.
Moreover, the Board also approved to propose to the Extraordinary General Meeting of Shareholders to consider and approve receiving financial assistance by executing loan agreement with Singer Thailand Public Company Limited (SET: SINGER), holding 74.9% in SGC, for the credit limit of THB 6,100 million with the tenor of 4 years, which will serve as a reserved loan for SGC to draw down in order to pay off existing debts owed to the company in the event that SGC needs to maintain financial liquidity by using it as working capital for its business operations.
SGC stated that shareholders will benefit from the company’s strong and stable financial structure from the capital increase, including the availability of capital and financial liquidity, which will cause benefits and enhance profits to the company as well as creating added value for shareholders in the long run.
The Extraordinary General Meeting of Shareholders will be held on 7 August 2024 at 10.00 a.m. in the form of an electronic meeting.
