Enviro-Hub Holdings has been granted an option to purchase a leasehold property at 1 Tech Park Crescent for $5.55 million, and through its subsidiary, it will pay 4% of the purchase consideration by way of a letter of nomination, according to a bourse filing on June 11.
The wholly-owned subsidiary of the company, Cimelia Resource Recovery, has accepted and exercised the option on June 11 to pay $220.000, or 4% of the total purchase consideration to the vendor of the property, Leoch Battery.
The balance of the purchase consideration, together with goods and services tax, shall be paid no later than 12 weeks from the date of the exercise of the option, or Sept 3, 2025.
Enviro-Hub says that the purchase consideration will be funded by a combination of internal resources and bank borrowings.
The property is a leasehold property with about 28 years remaining, and the lease is due to expire on August 17, 2053 pursuant to an instrument of lease made between the head lessor of the property, the Singapore Land Authority (SLA), and the vendor.
Assuming the transaction took place on Dec 31, 2024, the net loss after the acquisition will be $26.2 million, and net tangible assets will be $60 million.
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Enviro-Hub says that the purchase consideration was arrived at after negotiations on a willing-buyer and willing-seller basis. It had not commissioned a formal valuation of the property for the purposes of the proposed acquisition.
Shares in Enviro-Hub closed flat at 2.2 cents on June 11.
