Transcu Group, a Singapore Exchange Mainboard-listed company, has entered into a SGD72m equity line facility with YA Global Master SPV, a fund managed by Yorkville Advisors of New Jersey in the US.
The investment was sourced and advised by Yorkville Advisors HK.
Transcu, a life sciences company engaged in the research, development and commercialisation of technologies to improve the quality of life, may use the funds for the group’s general corporate and working capital purposes and to further develop its existing business portfolio which includes pharmaceutical, cosmetics and green technology businesses.
Under the terms of the equity line facility, Transcu may at its discretion, raise up to a total of SGD72,000,000 of equity capital in tranches from YA Global over a period of 24 months, in exchange for the issue of new ordinary shares, to be based on the terms and pricing in accordance with the equity line facility agreement.
Akihiko Matsumura (pictured), chief executive and executive director of Transcu, says: “We are extremely pleased to welcome Yorkville as a long-term strategic capital partner to help achieve our strategic objectives. The ELF will provide us with additional financial flexibility to fund our core businesses, in particular, our green business which has seen a lot of positive developments recently. At the same time, we will continue to strike a balance with our ongoing efforts to improve our operational and financial efficiency.”
Transcu has recently set up a joint venture company with Nanomizer for the joint development and commercialisation of its Nano-Emulsion Fuel System, a technology that produces energy-efficient fuel that realises substantial fuel savings and reduces gas emissions. Transcu aims to penetrate the shipping, power-generation, logistics and construction markets in Asia and Europe for its Nano-Emulsion Fuel System by financial year 2010.
The group has also increased its stake in Biomass Energy, a Japanese gastification technology company, and is currently involved in projects that deploy its technologies in Japan.
Anthony Chan, managing director and head of Asia at Yorkville HK, says: “We are excited about the prospects for Transcu with its proprietary technologies and proven ability to commercialise key product technologies. As Transcu takes proactive steps to streamline its businesses to focus on its core strengths, we hope to contribute to the growth of this dynamic company by providing an efficient channel for equity financing and being a capital partner.”
