LC Dev: proposed 1-for-5 rights issue of up to 171.6m new sh at issue price of $0.08 per rights share (56% discount to $0.18 price at last close). Subject to sh/h approval at EGM. From expected proceeds of up to $13.2m, $6m is earmarked for repayment of a revolving credit facility related to the previously announced Xuzhou joint venture project, with remainder to be used for working capital…
Recall that LC Dev bid successfully for a RMB300m land parcel in Xuzhou, to embark on a mixed development project expected to consist of residential, commercial and hotel components….
LC Dev FYJun10 results were a non-event. Revenue was flat, while core profitability was relatively unchanged after adjusting for lack of one-off impairment charges on PPE and lower finance expenses. Reported net profit was thin at just $1.1m, but better vs loss of $6.3m last yr. Stock trades at 38% discount to NAV/sh of $0.29 and 142x PE (due to low earnings base).
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