SGC announces a capital increase and a loan of THB 6.1 billion from SINGER to repay debt

SG Capital Public Company Limited (SET: SGC) announced the decision of the Board of Directors to propose a capital increase to the Extraordinary General Meeting.

The Board of Directors has agreed to propose to the Extraordinary General Meeting for the consideration and approval of an increase in the registered capital of the Company by 5,232,000,000 Baht from the original registered capital of 3,270,000,000 Baht to the new registered capital of 8,502,000,000 Baht through the issue of 5,232,000,000 newly issued ordinary shares with a nominal value of 1.00 Baht per share.

The newly issued shares will be used for (1) offering to existing shareholders in proportion to their respective shareholdings, (2) reserving the exercise of rights to purchase common shares under the warrants to purchase the Company’s No. 1 common shares (SGC-W1), which will be allocated to the Company’s existing shareholders in proportion to their shareholdings at a ratio of 5:1, free of charge and for a term of one year, and (3) reserving the exercise of rights to purchase common shares under the warrants to purchase the Company’s No. 2 common shares (SGC-W2), which will be allocated to the Company’s existing shareholders who have subscribed for the newly issued common shares and which will be allocated to the Company’s existing shareholders in proportion to their shareholdings at a ratio of 2.5:1, free of charge and for a term of three years.

In addition, the Board of Directors has also agreed to propose to the Extraordinary General Meeting of Shareholders the consideration and approval of financial support through the execution of a loan agreement with Singer Thailand Public Company Limited (SET: SINGER), which holds 74.9% of SGC, for a credit facility of THB 6,100 million with a term of 4 years, to serve as a reserved loan for SGC to settle existing indebtedness to the Company in case SGC needs to maintain its financial liquidity by using it as working capital for its business operations.

SGC stated that through the capital increase, shareholders will benefit from the Company’s strong and stable financial structure, including the availability of capital and financial liquidity, which will bring benefits and increased profits to the Company and create long-term value for shareholders.

The Extraordinary General Meeting will take place on August 7, 2024 at 10:00 a.m. in the form of an electronic General Meeting.