ASAT Holdings Limited announces closing of preferred share financing
Nov 01, 2005
ASAT Holdings Limited has announced the closing of its previously announced $15 million preferred share financing and $15 million purchase money loan commitments.
The purchase money loans will be funded if and when the additional capital is needed by the Company to complete the move of the Company's assembly and test facilities to Dongguan, China from Hong Kong, subject to satisfaction of various conditions, some of which are outside of the control of the Company. Both financings involved the issuance of warrants by the Company.
The preferred share financing was entered into with three of the Company's principal shareholder groups who together own approximately 84 percent of the Company's outstanding shares. The purchase money loan commitments have been entered into with one of those principal shareholder groups.
"The additional financing improves our financial position and provides us with the capital we need to complete the move of all our assembly and test operations to Dongguan, China by the middle of 2006. Once the move to China is complete, we expect our manufacturing and labor costs will drop significantly, which should improve our competitive position," said Robert J. Gange, president and chief executive officer of ASAT Holdings Limited.