Grandbanks Yach

Grandbanks Yach: Announced that it will place new shares worth $5.2m in net proceeds in a bid to help the company return to the black. Shares will be placed to a trust linked to Lim Kok Thay, chairman of Genting grp, and to Koh Cheng Keong, chairman of Msia's theme park operator Only World Group, at $0.2725/share. (Placement represents approx. 20% of grp’s share capital) Recall that Grandbanks is striving to be removed off watch list as orders trickle in. Note that orders for boats have been rolling in, signifying that the worst is over and tt demand for well-made yachts are trickling back. Grp has also managed to reduce its inventory by $8m to $13.5m as at end June. For 3Q12, Grand Banks achieved rev of $7.9m, a 30.2% decrease YOY and losses for the qtr were reduced by 4.5% to $1.6m. Grp note that they are working feverishly to be taken off SGX watch list. Co. is introducing further cost-cutting measures and plans to boost operational efficiency and improve its staff. To top it all off, grp is planning to ramp up its product dev and mkt its new products aggressively and open more co owned retail stores to boost its brand presence and expand into emerging mkts. With the new plans in place, FY13 looks like a better start for grp, with orderbook reaching $13m, an increase from $7.1m yoy.