Mooreast to secure $20m convertible loan

It will be used for working capital needs, business expansion, and investment opportunities.

Mooreast Holdings Ltd. has announced plans to take out a $20m convertible loan from SG-RT Fund, managed by N PrimePartners Capital Pte Ltd. 

The agreement, signed on 13 June, aims to bolster Mooreast's financial position for operational expansion and strategic investments.

The loan will be disbursed in two stages, starting with $1m within 60 days of signing and the remaining $19.01m following satisfaction of specified conditions by the Long Stop Date.

It will be used to support the group's working capital needs, business expansion, and investment opportunities.

“The company will use the convertible loan as working capital and finance the expansion and growth of the group’s business activities in various jurisdictions including not limited to Southeast Asia, Europe and the People’s Republic of China, so as to ensure the sustainability and profitability of the group,” the company stated.

The loan carries an annual interest rate of 3.7%, payable in cash annually from the disbursement date, with maturity set three years thereafter.

The transaction is subject to finalisation of a definitive loan agreement, with Mooreast committed to providing updates as the process advances.

If Mooreast achieves an annual comprehensive profit after tax of $12m before the loan matures, it has the option to fully prepay the convertible loan, subject to mutual agreement with SG-RT Fund.