Monday, September 30, 2013
YHM: to lift trading halt at 8.30am. Secured a contract worth more than US$37m over a 20 yr period to lease a set of hydro-electric power generation eqpt for power supply to a national utility board in South Asia. The co expects the lease to commence after the commissioning of the power plant which is expected to be before end 2013. The transaction will be funded through internal resources, a fund raising exercise and bank borrowings. The co believes this will allow it to diversify its earnings stream through a stable operating model and allow it to establish a foothold in the energy services business segment. Meanwhile, YHM proposes to raise up to $50m by way of a placement of up to 1b new listed warrants at an issue price of $0.025 per warrant, with exercise price of $0.025 each. The combined cost of $0.05 to buy and exercise each warrant, compares with YHM’s last traded price of $0.072. The bulk of the proceeds will be deployed toward the oil & gas business (80-100%), and the remainder toward the above energy services project (0-10%) and working capital (0-10%).