Tritech Group, on March 25, announced that it has entered into four collaboration agreements with new strategic investors.
The agreements, which were signed on March 22, were in relation to the development and commercial use of the eco-friendly automated uni-cell fish farming in Singapore; the expansion and development of Tritech membrane and membrane-related products; the expansion and development in relation to the production and sale of Vavie products; as well as the identification, investing in and managing new businesses and assets in the water treatment and water supply market in Asia.
The businesses are all part of, and stem from Tritech’s existing water and environmental protection business segment.
The agreements were entered into with Protocol Capital W.L.L. and Roads Holding Group W.L.L., Jackie Ng Chin Song and Tan Hong Seok, Stephanie Lorraine.
Under the agreements, Protocol Capital will invest up to US$475 million ($644.9 million), of which up to US$80 million will go towards the new special purpose vehicles (SPVs) incorporated or to be incorporated for the purposes of carrying out the proposed collaborations.
The remaining US$395 million will go towards the new water projects.
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Tritech will also contribute certain tangible assets and intangible assets as contributions in-kind for a 35% equity stake in the SPVs.
The introducers, Roads Holding, Ng and Tan, will be collectively acquiring a direct 14% stake in the SPVs.
The subsidiary of Tritech Membrane will be 100% wholly-owned by Tritech Membrane.
Tritech Vavie will also own a 35% stake in the shareholding of the Qatar SPV.
There is no long stop or termination date under the collaboration agreements, which depends on the incorporation of the SPVs.
Protocol Capital is a Qatar-registered investment firm that provides capital placement and strategic advisory services in the real estate, energy, construction and manufacturing industries.
Roads Holding is another Qatar-registered investment firm that provides management and investment consultancy services in the medical equipment, construction and property development industries.
Ng and Tan are individual investors who are based in Singapore. They have business dealings, networks or connections that are active in Asia and, or the Middle East markets.
Placement agreement
In addition to the collaboration agreements, Tritech has entered into a placement agreement with the same investors.
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Under the agreement, Tritech will place up to 742.2 million new ordinary shares in the capital of the company for a total cash consideration of up to $33.78 million.
The shares will be placed in Tritech over two tranches.
The first tranche will comprise 166.67 million shares, or around 16.42% of Tritech’s total shares, and 14.11% of the enlarged share capital. The shares will be allotted and issued to the placees at 3 cents apiece.
The second tranche will comprise the remaining 575.5 million shares, or 56.71% of the company’s total issued and paid up share capital, and 42.24% of the enlarged share capital. The shares in the second tranche will be issued at 5 cents per share, with the consideration paid in US dollars amounting to US$21.3 million.
The proposed placement and proposed collaborations are not inter-conditional; the latter will proceed with or without the proposed placement and vice versa.
Shares in Tritech closed at 1.8 cents before its trading halt on March 22.
