FINANCIAL EFFECTS OF THE PROPOSED INVESTMENT Sample Clauses
The 'Financial Effects of the Proposed Investment' clause outlines the anticipated financial impact that a new investment will have on the parties involved or on the entity making the investment. It typically details projected changes to financial statements, such as increases in assets, liabilities, revenues, or expenses, and may include estimates of return on investment or payback periods. By providing a clear analysis of the expected financial outcomes, this clause helps stakeholders assess the viability and potential risks of the investment, supporting informed decision-making.
FINANCIAL EFFECTS OF THE PROPOSED INVESTMENT. Assuming the disbursement in full of the Loans and the complete exercise of the Conversion Right by the Investor, the issue of the New Shares and the Additional New Shares will increase the issued and paid-up ordinary share capital of the Company as at the date of this announcement by approximately 16.4% from S$18,331,904 comprising 61,598,057 ordinary shares to S$21,331,904 comprising 131,509,657 ordinary shares. The net tangible assets per share of the Company and its subsidiaries (the “Group”) as at 31 March 2007 based on the audited financial statements of the Group was 7.5 cents. After adjusting for the issue of the New Shares and the Additional New Shares, the Group net tangible assets per share, as at 31 March 2007 would be 5.7 cents.
FINANCIAL EFFECTS OF THE PROPOSED INVESTMENT. 5.1. Bases and assumptions
(a) the financial effect on the consolidated net tangible assets ("NTA") per Share of the Group is computed on the assumption that the Proposed Investment was completed on 31 December 2020;
(b) the financial effects of the Proposed Investment on the loss per Share (“LPS”) of the Group is computed based on the assumption that the Proposed Investment was completed on 1 January 2020;
(c) the expenses incurred in connection with the Proposed Investment amounts to approximately S$30,000; and
5.2. NTA per Share As at 31 December 2020 Before the Proposed Investment After the Proposed Investment
FINANCIAL EFFECTS OF THE PROPOSED INVESTMENT. 6.1 It is not possible to determine precisely the financial effects the transactions contemplated in the Investment Agreement would have on the Company until inter alia the Loans have been fully drawn and the Options have been fully converted into shares;
6.2 The Company has sought for an extension of time for the Company to convene its Annual General Meeting in respect of the financial years ended 31 January 2020 and 2021. Accordingly, the Company is unable to set out the financial effects of the Loans and the transactions contemplated in the Investment Agreement based on the consolidated financial results for the financial year ended 31 January 2021. However, solely for the purposes of illustration, the Company has set out the financial effects of the Loans and the transactions contemplated in the Investment Agreement on the Company’s share capital and Group’s earnings per share and net assets value per share, based on the latest audited consolidated financial statements for the financial year ended 31 January 2019 (“FY2019”).
6.3 The financial effects set out below are on the following bases and assumptions (assuming transaction cost are negligible);
(a) the complete disbursements of the Loans;
(b) the allotment and issue to the Investor 102,166,007 Shares at an issue price of S$0.042 per Investment Share;
(c) exercise of all 167,834,000 Options at an exercise price of S$0.042 for each share;
(d) the Set-Off; and
(e) transaction costs of S$250,000. (collectively, “Corporate Actions”)
6.4 Changes in share capital, loss per share and Net Asset Value Issued and paid-up share capital (S$) 14,250,000 25,590,000 Total number of Issued Shares-end of year 29,999,993 300,000,000 Net loss for the year as at FY2019 (S$) (6,571,000) (6,821,000) Number of issued shares 29,999,993 300,000,000
FINANCIAL EFFECTS OF THE PROPOSED INVESTMENT. The proforma financial effects of the Proposed Investment on the NTA attributable to the owners of the Company per share and the earnings per share ("EPS") of the Group are set out below. The proforma financial effects have been prepared based on the audited financial results of the Group for the financial year ended 31 December 2022 ("FY2022"). The proforma financial effects are purely for illustration purposes only and are therefore not necessarily indicative of the actual financial position of the Group after completion of the Proposed Investment. As the Definitive Agreements have not been executed by the Parties as at the date of this announcement, the Company will make an announcement detailing the updated financial effects of the Proposed Investment, taking into account the Relevant Payments pursuant to the Relevant Lease Arrangements and fees associated with the Trademark Licensing Agreement if any, upon the Parties' entry into the respective agreements.
(a) Effect on NTA per share
(b) Effect on EPS
(c) Effect on gearing ratio (d) Effect on share capital of the Company
FINANCIAL EFFECTS OF THE PROPOSED INVESTMENT. The financial effects of the proposed investment are as follows:-