Treet Corporation Limited Reports Full Utilization of Right Issue Proceeds for Debt Repayment

Karachi: Treet Corporation Limited has successfully utilized the proceeds from its 107.602% Rights Issue, primarily for debt repayment, according to a recent progress report. The Rights Issue, which involved 192.31 million shares at an offer price of PKR 13 per share, was fully subscribed and issued on January 16, 2024. The total funds raised amounted to approximately PKR 2.50 billion.

According to information available from the Pakistan Stock Exchange (PSX), the company had outlined its planned use of the funds in an Offer Document released on October 30, 2023. The latest report confirms that PKR 1.90 billion, representing 76% of the total proceeds, was allocated and entirely spent on repaying debt and realigning the capital structure, achieving a 100% utilization rate.

Additionally, the funds were earmarked for capacity enhancement and new product development, with partial expenditures reported. About PKR 370 million (14.8% of the funds) was spent to enhance the capacity of its razor production, with 33.70% of that portion utilized. The development of a new product, a twin-blade rubberized handle razor, saw PKR 230 million allocated, of which 65% has been spent.

The company assures that there has been no deviation from the intended purposes outlined in the Offer Document. Treet Corporation’s transparency in reporting the exact allocation and utilization of the proceeds reflects its commitment to its shareholders and compliance with regulatory requirements.