SINGAPORE (Aug 1): ISR Capital has entered into a supplemental agreement with vendor REO Magnetic to revise the terms of the acquisition for a 60% stake in Tantalum.
The original agreement was for ISR Capital to wholly satisfy the $40 million acquisition with the issue of shares at 10 cents each to REO Magnetic.
Under the supplement agreement, ISR Capital says the total consideration has been revised to $4.5 million which shall be fully satisfied with the issue of roughly 674.8 million shares at 0.67 cents each. The consideration shares include 12.5 million convertible securities but exclude treasury shares.
In an April interview with The Edge Singapore, ISR Capital said it was going ahead with the planned acquisition of the rare earth concession in Madagascar.
See: Chairman Chen Tong says ISR Capital to push ahead with Madagascar acquisition
Executive chairman Chen Tong told The Edge that the company had engaged a third valuer to appraise the value of the concession. Two earlier valuation reports were rejected by the Singapore Exchange.
The rejected first and second reports had appraised the concession to be worth more than US$1 billion ($1.4 billion). The first report was rejected because SGX had deemed the valuer not qualified while the second report was rejected for questionable data.
See: SGX raises more questions on ISR Capital’s second mineral valuation report
See: SGX suspends trading of ISR Capital shares to ‘safeguard market interest’
ISR made the news last year when it found itself entangled with John Soh Chee Wen, alleged mastermind of the 2013 penny stock crash. The Malaysian businessman, who is now in remand, is alleged by prosecutors to have manipulated shares of ISR Capital as well.
See: SGX should disclose why it suspended trading of ISR shares
Update: Shares in ISR Capital closed at 0.6 cent on Tuesday.
