Tropical Battery targets June 6 for close of APO

 


 Tropical Battery Company Limited is seeking to raise funds to retire older debt in a new secondary public share offering. The offer which opened on May 22 will close on June 6, 2025.  New ordinary shares on offer are priced at J$1.87 each.

Lead arranger is Sygnus Capital Limited   in partnership with Sagicor Investments Jamaica Limited and NCB Capital Markets Limited, as the brokers engaged by the Company to assist with implementation of the Invitation.

The company is  offering to investors 1,122,994,652 new ordinary shares. Up to 267,379,679 shares are initially reserved for priority application by the Reserved Share Applicants falling within the Key Strategic Investor Pool at the price of J$1.87 per New Ordinary Share.

The company aims to  repay existing loan of approximately US$9.5 million (approx. J$1.4 billion) owed to CIBC Caribbean Bank (Jamaica) Limited (formerly FirstCaribbean International Bank (Jamaica) Limited) as a result of the acquisition of Rose Electronics Distributing Company.

They also intend to  repay monies owed on outstanding bonds of approximately J$300 million and to settle all transaction related

Listed in 2020, Tropical Battery y acquired a 51 per cent stake in renewable energy solution provider Kaya Energy Group, in the Dominican Republic in the fiscal year 2023.

Then in January 2024, it made a  100 per cent acquisition of the Silicon Valley California-based Rose Batteries, completed on January 31, 2024, a company with US$22 million in revenue and US$3.7 million in net income for calendar year 2023.

The capital raised will retire the debt related to the bridge financing, “freeing up” cash that would have otherwise been allocated to debt service.

Management commented, “This is likely to boost net profits, enabling us to distribute higher dividends and reinvest in the business for further growth.”

 

Caribbean Money Daily

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