PACE’s Business Restructuring Plans Pave the Way for Lifting “C” Sign

PACE Development Corporation Public Company Limited (PACE) has made a public presentation on November 29, 2018, for investors and related persons to clarify tPACE’s performance due to fact that the shareholders’ equity is less than 50% of paid-up capital for PACE’ third-quarter 2018 financial statements. The presentation has divided into three parts.

 

Property Business
1. For real estate projects for sale that are under sale activities and construction:
1.1 Transfer the unit sold of The Ritz – Carlton Residences Bangkok and sell the remaining units to record the revenue from sales by end of 2018.
1.2 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 into 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.
2.1 Agreements with three partners have been signed and announced to expand globally to destinations such as China, Thailand and European countries. While five new stores have been opened in Malaysia, Hong Kong and Japan.
3. Develop the products under the Dean & DeLuca brand and/ or collaborating with celebrities to sell the products in Dean & DeLuca stores and other sales channels to create more value for the brand.
4. Expand more sources of revenue through B2C and B2B channel to improve brand awareness and total sales.

 

Financial Restructuring
Financial restructuring could immediately change PACE’s capital structure as well as the financial ratios (shareholders’ equity to paid-up capital). PACE will need to carefully consider the impact to all parties.

 

In summary, PACE business’s framework to improve and change PACE shareholders’ 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 2 core businesses (Property Business and Gourmet Food and Beverage Business) and partly from financial restructuring framework which PACE will carefully consider the impact to all parties.