REG - Aseana Prop Ltd - Appointment of financial adviser and other matters

Aseana PropertiesAnnouncement

31/10/2024 09:45

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RNS Number : 4161K  Aseana Properties Limited  31 October 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

31 October 2024

 

Aseana Properties Limited

(the "Company" or "Aseana")

 

Appointment of financial adviser, potential fundraise and loan repayment
demands

 

Appointment of a financial adviser

 

The Company announces the appointment of Allenby
Capital Limited as financial adviser to the Company with immediate
effect.

 

Potential fundraise

 

In light of the financial challenges facing the Company, including the
receipt of a demand letter dated 21 October 2024 on the payment of
the medium term note (the "MTN"), details of which were announced on 22
October 2024, the board of the Company (the "Board") is considering an
equity fundraising to provide the necessary capital for the Company to
repay part of its subsidiaries' borrowings and provide the Company with
additional working capital.

 

At this time, the Board is intending to structure the fundraising by way of
a pre-emptive offer to shareholders, so as to allow the Company's existing
shareholders the opportunity to participate in the fundraise.  Based
on the Company's capital requirements, the Board expects such a pre-emptive
fundraising to be structured as an open offer to shareholders on the basis
of 1 new share for every 1 existing ordinary share held at an issue
price close to the Company's current mid-market share price. Any such
fundraising would require, inter alia, approval by shareholders of the
Company and the production of a prospectus which would need to be approved by
the Financial Conduct Authority.

 

In the meantime, the Board is engaged in discussions for some interim
refinancing of the defaulted loans to forestall proceedings that may be taken
by existing lenders pending completion of the above equity fundraising.

 

There can be no certainty on the timing or terms of any fundraising, nor can
there be any certainty that a fundraising will be successfully concluded.
In the absence of availability of any alternative funding solutions,
the Board considers that it is highly likely that the Company would be
required to appoint an administrator in order to protect the interests
of its creditors.

 

Receipt of loan repayment demands

 

The Company also announces that it has received demands for the repayment of
certain loans made by a former director and other parties connected to the
Company.  As all the current directors have recently joined the Board and
were not involved in the arranging or approving of these loans the Board has
appointed an external lawyer to review the terms of the loans and associated
decisions from a governance and compliance standpoint so that these are
addressed comprehensively, transparently, and, in particular, for compliance
with Jersey company law, the UK Listing Rules and other regulatory
requirements.

 

The Company will make further announcements, including details of any
fundraising, as and when appropriate.

 

Enquiries:

 

 Aseana Properties Limited
 Thong Kok Cheong                                kcthong@aseanaplc.com (mailto:kcthong@aseanaplc.com)

 Allenby Capital Limited (Financial Adviser)     +44 (0) 20 3328 5656
  Nick Naylor/Nick Athanas (Corporate Finance)

 

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