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STRATECH SYSTEMS PROPOSES RENOUNCEABLE NON-UNDERWRITTEN RIGHTS ISSUE
Singapore, 1 June 2007 – Mainboard-listed Stratech Systems Limited (“Stratech” or “the Company”) today announced that it intends to undertake a renounceable non-underwritten rights issue (the “Rights Issue”) of up to 116,756,119 new ordinary shares at the issue price of S$0.055 cents each (the "Issue Prices") on the basis of one Rights Share for every four shares held.
The Rights Shares are payable in full upon acceptance and application, and when allotted and issued, will rank pari passu in all respects with the then existing Shares. The Issue Price of S$0.055 cents for each Rights Share represents a discount of approximately 15.38% from the weighted average price of S$0.065 cents per Share on the Singapore Exchange Securities Trading Limited (SGX-ST) on 1 June 2007, being the last trading day preceding this announcement.
Assuming full subscription of the Rights Issue, the estimated net proceeds will amount to approximately S$6.22 million after deducting expenses. The Rights Issue is subject to the in-principle approval being obtained from the SGX-ST for the dealing in, listing and quotation of the Rights Issue on the Official List of the SGX-ST.
The consideration payable by Dr Chew and Ms Leong Sook Ching (the “Principal Shareholders”) in respect of their entitlement to 53,289,492 Rights Shares, or approximately S$2.93 million will be offset against the loan amount of S$4 million due by the Company to Dr Chew. The Loan does not carry any interest. The utilisation of the Loan to subscribe to the Rights Shares by the Principal Shareholders is expected to improve the net asset value of the Company.
The net cash proceeds from the Rights Issue will be approximately S$3.29 million (assuming the Principal Shareholders do not subscribe to excess Rights Shares). The Company intends to utilise the net cash proceeds as additional working capital.
Dr David K.M. Chew, Executive Chairman of Stratech Systems Limited, said: “The purpose of the Rights Issue is to further strengthen the capital base of the Group and encourage a wider spread of shareholders by increasing the number of shares available for trading. At the same time, with this Rights Issue, it is expected to improve the trading liquidity of the Shares”.
About Stratech Systems Limited (“Stratech”)
Stratech Systems Limited (“Stratech”) was listed on the Main Board of the Singapore Exchange in 2000. It is principally engaged in the design, development, integration, implementation, maintenance and project management of information technology and advanced technology systems. The Group delivers large-scale complex, real-time, mission critical systems in the areas of intelligent Vision, intelligent Transport Systems and e-Systems for governments and businesses.
In 2006, Stratech won the Research and Development prize for its intelligent Airfield/Runway Surveillance and Foreign Object and Debris (FOD) Detection System at the Asia Pacific ICT Awards. Stratech’s iFerret™ (a world’s first system to utilise intelligent Vision to detect and classify foreign object, with the ability to pinpoint the location of the foreign objects) was awarded The Enterprise Challenge (TEC) initiative by the Prime Minister’s Office of Singapore in 2006.
Founded in 1989, the Group has established an impressive track record serving industries such as aerospace and defence, financial services, government, healthcare, homeland security and transportation (air, sea and land). The Group develops and implements advanced technology solutions that achieve significant business transformation and competitive advantage for its clients.
For more information, please visit www.stratechsystems.com