Friday, August 3, 2012

Asia-Pacific Strategic ends share subscription deal

Business Times: Wed, Aug 01

ASIA-PACIFIC Strategic Investments (APSI) and an existing shareholder Au-Yeung Ho Sum have terminated an agreement for the latter to subscribe for 7.5 million new shares in the company.

No reason for the termination was given by the company in its announcement yesterday.

APSI - which offers funeral and disposition services - first announced the proposed subscriptions at 40 cents a share by Mr Au-Yeung (7.5 million shares) and another individual Qiang Linmei (10 million shares) in April this year. Mr Au-Yeung was then said to have a stake of about 4 per cent in APSI's existing capital.

Ms Qiang's subscription was completed in May, giving her a direct stake of 14.42 per cent in the company. The April announcement described her as the managing director of Xi'an Dongshang Real Estate Development Co.

APSI said then that part of the expected net proceeds of $6.97 million from the subscriptions would be used to partially finance the cash component of a $568 million reverse takeover deal it had entered into with Bright Eagle Enterprises Group Ltd (BEEGL).

APSI said yesterday that following the termination of the agreement with Mr Au-Yeung, the net proceeds were reduced from the initially anticipated $6.97 million to about $3.97 million.

The group will use 30-60 per cent of the net proceeds to meet some of the expenses relating to the proposed acquisition of two units that will carry out joint development agreements (JDAs) secured by BEEGL. These JDAs involve the conversion of fuel oil-based generation units into coal-based power generators in Pakistan. Part of the net proceeds will also be used as general working capital.

APSI said the termination of the subscription agreement with Mr Au-Yeung will not have any material impact on the company's financial position for the current financial year.

The counter was last traded on July 30 at 27 cents.

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