Struggling auto component maker Advanced Engine Components has announced the details of its restructure and recapitalisation.
It will involve:
- A consolidation of existing shares on a 1 for 10 basis;
- A placement of 10 million shares at 10 cents a share to raise $1 million in mezzanine funding;
- A conversion of $2.15 million existing debt to equity at 10 cents a share;
- A conversion of $3.3 million existing debt to equity at 20 cents a share; and
- A subsequent public prospectus offer, including a priority right to existing shareholder of 17.5 million shares at 20 cents a share.
The company’s parent 698 Capital International Limited, which is converting the existing debt to equity, will also underwrite any shortfall of five million shares or less at 20 cents a share.