TTC AgriS temporarily suspends plan to issue 148 million shares

Thanh Thanh Cong - Bien Hoa Joint Stock Company (stock code SBT - HOSE) has just announced the Board of Directors' Resolution dated March 22, 2024 on temporarily suspending the public offering of additional shares.

On March 22, 2024, TTC AgriS announced the Board of Directors' Resolution on postponing the plan to issue an additional 148 million shares (equivalent to 20% of charter capital) to existing shareholders with an expected offering price of VND 12,000/share.

According to the initial capital increase plan, the expected offering time is before December 31, 2024 and after being approved by the State Securities Commission, with the right exercise ratio of 5:1. If the offering is successful, TTC AgriS could collect more than VND 1,777 billion, the entire amount of proceeds is expected to be used to supplement capital sources to serve the key strategies of TTC AgriS in the period of 2021 - 2025.

TTC AgriS temporarily suspends plan to issue 148 million shares.

The Board of Directors' Resolution announced that the reason for temporarily postponing the issuance of additional shares of TTC AgriS is because the Company wants to ensure the interests of shareholders in the context of a volatile general market.

It is known that the Board of Directors of TTC AgriS will consider, decide and re-implement the public offering of shares at another time more suitable to the company's business plan and the company's development orientation must be based on the spirit of ensuring the rights and interests of shareholders.

Based on the authorization of the General Meeting of Shareholders, the Board of Directors will consider, decide and re-implement the public offering of shares at another time in accordance with the interests of the company, shareholders and in compliance with regulations. The Board of Directors of the Company will report the suspension of the issuance of shares at the nearest General Meeting of Shareholders.

Previously, according to the original plan, SBT planned to issue more than 148 million shares (equivalent to 20% of charter capital) to existing shareholders at an expected offering price of VND12,000/share. The expected offering date is before December 31, 2024 and after being approved by the State Securities Commission . If the offering is successful, Thanh Thanh Cong - Bien Hoa can collect more than VND1,777 billion to pay for sugar and fertilizer purchase contracts with its subsidiaries.

The suspension of this share issuance took place in the context that SBT had just successfully mobilized 1,000 billion VND from bonds. Specifically, on January 29, 2024, the Company issued a bond lot coded SBTH2427001 with a volume of 5,000 bonds, par value of 100 million VND/bond, equivalent to an issuance value of 500 billion VND. The completion date is February 22, 2024. With a term of 3 years, this bond lot matures on January 29, 2027. The issuance interest rate is 11%/year.

Previously, on November 30, 2023, SBT also successfully issued bond lot SBTB2326002, with a value of 500 billion VND. The issuance date is November 30, 2023 and was completed on December 5, 2023. This bond code has a term of 3 years, maturing on November 30, 2026. Interest rate is 10.5%/year.

In order to restructure the portfolio and optimize investment activities, on March 11, 2024, Ms. Huynh Bich Ngoc, Chairwoman of the Board of Directors of Thanh Thanh Cong - Bien Hoa Joint Stock Company (TTC AgriS, Hose: SBT) announced the registration of transferring 15 million SBT shares. The transaction is expected to be carried out by 100% negotiation. The transaction period is from March 14, 2024 to April 12, 2024. The expected buyers are units in the same ecosystem of the Company.

As of March 11, 2024, Ms. Huynh Bich Ngoc is holding 84,265,703 SBT shares, equivalent to 11.06% of the equity. If the transaction is successful, Ms. Ngoc is expected to hold 69,265,703 shares, equivalent to 9.09% of the equity. It is known that this transaction is carried out with the purpose of restructuring the investment portfolio, and is part of the capital optimization plan to develop the "green" business strategy of the Board of Directors of TTC AgriS.

Previously, at the 2022-2023 Annual General Meeting of Shareholders held in Tay Ninh , Ms. Ngoc also emphasized: "Sustainable development is a consistent strategy in the development journey of TTC AgriS. We take the "Green" strategy as the foundation for development, competitive advantage and provide the market with green energy solutions from clean production."

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