Advance SCT (ASCT): Announced it is set to acquire the working capital of Qingyuan Shengli Copper Material (QSCM), which will provide more resources for ASCT Qingyuan's copper smelting operations and enable it to leverage on the established business network and infrastructure of QSCM.
Add that group's stronger rev growth in 1H11 was party due to collaborative efforts with QSCM and said this acquisition of working capital is 'necessary' to sustain the strong growth of ASCT's manufacturing operations in China.
The Rmb17.4m ($3.3m) price tag for the Chinese copper smelter, which comprises primarily cash and inventory, will be fulfilled via the issuance of 148.9m new ordinary shares in capital of ASCT to QSCM at issue price of 2.2c, which is VWAP of trades done for one trading day prior to signing of agreement. New shares issued translate to about 15.5% of the existing issued and paid-up capital of ASCT and 13.4% of the enlarged issued share capital of ASCT.
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