PACE to Finalize with Capital Increase through RO to Solve “C” Sign!

PACE Development Corporation Public Company Limited (PACE) has presented a Public Presentation for investors and related persons to clarify PACE’s performance due to fact that the shareholders’ equity is less than 50% of paid-up capital for the third-quarter 2018 financial statements. The meeting was held on May 27, 2019, 10.00 a.m., Board Room, at PACE Development Corporation Public Company Limited, No. 723 Teo Hong Silom Building, 6th Floor, Silom Road, Silom Sub-district, Bangrak District, Bangkok 10500.

PACE has presents its plan and progress to solve the C sign through three business frameworks as follows:

 

Property Business
1) For real estate projects for sale that are under sale activities and construction: Proceed with the construction and sale activities according to plans in order to record the revenues as targeted of the following years. Development in sales and construction progress according to the plan while target to transfer and recognize revenue from the third quarter of 2019.

2) Adjust and enhance recurring income asset in order to increase revenue for projects such as MahaSamutr Country Club which is currently under construction.

3) Explore new business opportunities to develop new projects. The forms of investment will be subject to the appropriateness of PACE’s financial status.

 

Gourmet Food and Beverage Business
1) Restructure the business operations by separating the business in to regional segment in order to create more efficiency and increase regional suitability.

2) Expand stores and value-added Dean & DeLuca brands for both domestic and overseas location through franchise model in Europe and North America.

3) Expand more sources of revenue through B2C and B2B channel to improve brand awareness and total sales.

4) Stores expansion both by PACE and franchise in Thailand to bring greater financial performance in 2019

 

Financial Restructuring
Regarding the financial restructure of PACE discloses the resolutions made at the Board of Directors to proposed the Shareholders’ Annual General Meeting to propose the extraordinary shareholders meeting consider and approve the allocation of the newly-issued ordinary shares as follows:

The allocation of the newly-issued ordinary shares of not exceeding 8,025,793,914 newly issued ordinary shares, at the par value of Baht 1 per share, in order to offer them for sale to the existing shareholders proportionate to their respective shareholdings (Rights Offering), at the allocation ratio of 3 existing ordinary share to 2 newly-issued ordinary shares, at the offering price of Baht 0.25 per share.

PACE has the necessity to increase the capital in order to conduct the appropriate capital restructuring and to facilitate the business operation; therefore, the Board of Directors has considered the issuance of the newly-issued ordinary shares proportionate to their respective shareholding (Rights Offering). The proceeds from the capital increase shall reduce debt obligations and be used as working capital for business operation and used in the development of the real estate projects of PACE pursuant to the objectives.

 

In summary, PACE business’s framework to improve and change PACE shareholder’s equity that is less than 50% of paid-up capital is partly from the operational business framework which will assist in reducing the accumulated loss (increasing shareholders’ equity), from two core businesses (Property Business and Gourmet Food and Beverage Business) and partly from financial restructuring framework which PACE has recently commenced with the proposal of capital increase by offering to the existing shareholders proportionate to their respective shareholdings (Rights Offering).