Fiesta Development is owned by Chin Bay Ching, who is also the controlling shareholder of Adventus Holdings. As at Sept 20, Chin has a direct and deemed interest of 756.6 million ordinary shares, or a 30.86% stake in Adventus.
Accordingly, Chin is deemed as an interested person in this transaction.
Of the loan amount, 10%-20% will go towards the development cost, 60%-70% will go towards repaying its bank borrowings and 10%-20% will go towards working capital.
In its bourse filing, Adventus says: “The group is closely monitoring and managing its cash resources, cashflow and working capital requirements and believes that the loan will enhance the group’s flexibility in its cash management strategy and provide additional cash for the group to apply towards the proposed uses of the loan proceeds as set out above.”
See also: Adventus Holdings to raise $3.1 million via placement
Shares in Adventus closed flat at 0.7 cent on Sept 20.
