Sabina Corporation has issued an allotment of shares to Churchill Nominees Australia to settle the debt of $280,000.
Sabina will issue 4,307,700 ordinary shares to Churchill at 6.5 cents per share, which currently holds 36.15% interest in the company.
Following the allotment, Churchill’s holding in Sabina total 9,485,532 shares or 50.49%.
Churchill also controls 60% interest in the various property trusts in Tasmania that are administered by corporate trustee, Tasmania Development Corporation.
Under the arrangement, Sabina will act as project developer/manager for the Billabong-owned 12,960 sqm development site.
Sabina’s chairman Peter Chen said the allotment would allow the company to retain its funds for working capital until cash flow is generated from project management frees, expected to start slowing in the second half of 2006 when the $36 million Univillage project in Tasmania gets underway.
By Nelson Yap
