Nam Tai Property Inc. (NYSE: NTP) announced Monday that it has completed a private placement for which the Shenzhen-based technology park operator will receive gross proceeds of $170 million. The company plans to use the proceeds to pay down debt and increase its financial flexibility.
Lai Ling Tam, the executive chairman of the board of directors said, "After thoughtful deliberation by the Board working with management and the Board's external financial advisor, we are pleased to announce this investment by two strategic, well-capitalized and long-term shareholders who recognize the value creation potential of Nam Tai."
He added, "As we navigate the current economic environment, the proceeds from this transaction will significantly enhance our financial flexibility and mitigate meaningful risks to our financial stability."
The company reported that net loss from operations widened to $8.21 million, or 18 cents a share versus $6.62 million, or 13 cents a share in the same period in the preceding year. Nam Tai attributed the widened losses to general and administrative expenses which topped $5.5 million as well as increased marketing expenses, which reached $2.9 million.
Operating for 45 years, Nam Tai has its mainland resources located in the Guangdong -Hong Kong-Macao Greater Bay Area and Wuxi. According to Nam Tai, it currently is focused on the development of two projects in Shenzhen.
Shares of Nam Tai down 22.79% midday, trading at $7.25 in New York.