TEE International has entered an agreement for a term loan of up to S$1.8 million with Meta5, an entity that had previously subscribed to its shares, the mainboard-listed company announced in a Friday (Jan 20) bourse filing.

 

The proceeds will fund costs associated with Tee International&rsquo s restructuring, as well as mortgage loan instalments and the company&rsquo s operating expenses.

 

In August last year, Tee International entered a conditional subscription agreement with Meta5 to issue new shares in the company worth S$7.5 million. It had earlier planned to raise up to S$14 million through new share subscription and issue, but this fell through after two investors decided not to proceed.

 

Trading in Tee International&rsquo s shares has been suspended since June 2021.

 

TEE International announced on Thursday (Nov 3) that its chief financial officer (CFO) Chua Siong Kiat is resigning to pursue other career opportunities and his role will be undertaken by the group&rsquo s chief financial controller and corporate finance senior manger.

 

In a bourse filing, the group noted that with the majority of its debt restructuring work complete, successful implementation of the new financial reporting announcements requirements and format, and successful completion of the re-audit for the financial statements of the FY ending May 31, 2020, Chua believes it is time to move on.

 

Chua, 51, was appointed as the group&rsquo s CFO on Oct 10, 2021 to chart the group&rsquo s business strategies and be responsible for the corporate finance of the company including listing compliance and investor relations. He was also in charge of its financial reporting and accounting.

 

 

According to the company&rsquo s website, before joining Tee International, Chua was self-employed as a director of Lighthouse Business Consulting, a boutique business consulting firm. 

 

He has over 25 years of international broad-based financial and management experience, mainly in real estate investment and development, building construction and materials, healthcare and medical assurance sectors.

 

Tee International currently does not meet the minimum requirement of having three audit committee members, and has two independent directors currently residing in Singapore.

 

In August this year, the company entered into a conditional subscription agreement with Meta5 to issue new shares in the company worth S$7.5 million. Tee International is also proposing a rights issue to raise S$3.5 million, bringing the total amount the company plans to raise to S$18.5 million.

Tee International to issue new shares worth S$7.5 million, proposes debt restructuring 

 

TEE International has entered into a conditional subscription agreement with Meta5 to issue new shares in the company worth S$7.5 million.

 

Meta5 will also subscribe S$7.5 million of unlisted and non-transferable share options in the company. Each option carries the right to subscribe for a new ordinary share in the company, the mechanical and electrical services group said in a bourse filing on Thursday (Aug 18).

 

This follows Tee International' s announcement this month that its earlier plans to raise up to S$14 million through new share subscription and issue fell through after its 2 investors decided not to proceed with the proposed transactions.

 

Proceeds from the subscription will be used to repay eligible creditors they will also be used as working capital, and to fund the growth of the company' s business.

 

Upon completion, the new subscription shares are expected to represent around 52 per cent of the enlarged share capital of the company.

 

Meta5' s principal activity is that of a holding company. Its shareholders include Zheng Le, an entrepreneur in the entertainment, media and esports industry, and Tan Fuh Gih, who has previously invested in the offshore marine, energy and real estate sectors.

 

Tee International is also considering a debt-restructuring exercise, and proposing to issue new shares to its key management team as well as RSM Corporate Advisory. RSM was engaged in 2021 to review its businesses and improve its financial position and performance.

 

Of its enlarged share capital, Tee International is planning to issue not more than 3.5 per cent to its key management team, and not more than 7 per cent to RSM.

 

The company has also undertaken to pursue a rights issue to raise S$3.5 million, within 3 months from the competition of the above proposed transactions.

 

Tee International said it will provide more details in due course, after the terms of the proposed debt restructuring are finalised. This includes details on the subscription price, issue size, the share issuance to its management and RSM, and the financial effects of the proposed transactions.

 

Trading in Tee International' s shares has been suspended since June 2021.

 

 

TEE International&rsquo s earlier plans to raise up to S$14 million through new share subscription and issue has fallen through after its 2 investors decided not to proceed with the proposed transactions, it said in an announcement on the Singapore Exchange on Tuesday (Aug 2).

 

This comes after the mechanical and electrical services group had earlier announced its entry into a non-binding term sheet to issue the 2 investors a total of S$7 million worth of subscription shares, and at the same time grant them the option to require the company issue new shares worth up to S$7 million to themselves or their designated nominees.

 

Proceeds from the proposed subscription of new ordinary shares - after deduction of expenses - were to be used for the working capital purposes of the group and to fund the growth of its businesses.

 

No reasons were provided for the investors&rsquo decision.

EMBATTLED mechanical and electrical services group Tee International : M1Z 0%has reported a return to profitability despite a plunge in turnover.

 

Second-quarter net profit was S$34.3 million in the 3 months to Mar 31, 2022, reversing a loss of S$6.1 million in the year-ago period, according to unaudited results last Saturday (May 14).

 

Revenue more than halved to S$17.6 million, from S$35.6 million in the year before &ndash mainly on plummeting sales in the engineering and construction segment.

 

Meanwhile, other operating expenses ballooned to S$38.0 million, from S$1.8 million previously.

 

Still, the bottom line was shored up by S$71.9 million in gains on the de-recognition of Trans Equatorial Engineering and its subsidiaries upon loss of control. Its wholly-owned Trans Equatorial unit was officially placed under creditors&rsquo voluntary liquidation in January 2022.

 

Tee International posted a half-year net profit of S$33.6 million, against a loss of S$6.9 million previously, even as revenue fell by 50.9 per cent to S$44.1 million, from S$89.7 million before.

 

Earnings per share (EPS) came to 5.30 Singapore cents for the 3 months, turning around from a loss of 0.95 Singapore cent previously. EPS was 5.20 Singapore cents for the half-year, against a loss of 1.07 Singapore cents before.

 

The group&rsquo s net asset value stood at a negative 22.7 Singapore cents a share as at Mar 31, 2022, compared with a negative 27.8 Singapore cents a share as at Sep 30, 2021.

 

Tee International&rsquo s outstanding engineering and construction order book was about S$44.7 million, with 5 ongoing projects as at end-March 2022, although the outlook statement cited headwinds such as a manpower shortage, supply-chain disruption, and rising input costs.

 

The board also noted that Tee International and its subsidiaries plan to propose a scheme of arrangement between the company and its creditors, and has separately entered into a non-binding term sheet with 2 investors for a possible restructuring process.

 

Despite challenges, the group will press on to form &ldquo strategic partnership with valued and synergetic partners to secure new projects and be vigilant on cash flow and cost management&rdquo , it said. The group will also work on divesting overseas infrastructure assets.

 

No dividend was recommended. The board cited &ldquo an accumulated loss-making position&rdquo and the need to manage cash flow in a &ldquo highly volatile and uncertain global operating environment&rdquo .

  Tee International on Friday (Feb 18) said it received an order on Feb 17 to produce various documents to the Commercial Affairs Department (CAD) to assist with an investigation regarding an offence under the Securities and Futures Act (SFA).

 

The new development comes just a day after the Singapore Exchange said it reported the mainboard-listed engineering group to relevant authorities for potential offences under the SFA. The bourse operator is also investigating the company for potential listing rule breaches.

 

All of Tee International' s independent directors, its non-executive director and the managing director of its engineering and construction business were also asked to assist with CAD' s investigations, the company said in a bourse filing. They have been interviewed by the CAD on Feb 17 and 18.

 

" None of the current directors or management personnel has been asked to surrender their passports," Tee International noted.

 

Under the CAD order, Tee International must provide CAD access to certain information and/or documents about the company and its subsidiaries related to claims made against them - including documents and correspondences.

 

The company must also produce financial and accounting computations and records, as well as the meeting minutes of the board and certain committees of the board. Corporate e-mails belonging to and IT equipment used by certain current and former directors and financial personnel will also need to be handed over.

 

CAD' s investigations appear to relate to matters which occurred during the Jan 1, 2020, to July 31, 2021 period, Tee International said. It added that the group' s executive directors and key management personnel present during that period have since resigned.

 

" Additionally, the current management and board have taken steps to ensure that improvements are made and proper procedures are put in place to monitor the claims received by the group and to escalate the same to the current board," the company said.

 

It does not expect the investigations to affect the group' s ongoing debt restructuring exercise or its business and operations as they relate to past matters.

 

Shares of Tee International last traded at 3.2 cents on June 15, 2021. The company had requested for a voluntary trading suspension, as it was reviewing its existing business amid a significant loss reported for its fourth quarter ended May 31, 2021.