Reitar Logtech Holdings Limited (NASDAQ: RITR) entered into a non‑binding Memorandum of Understanding with Equator Capital Management SPC, a Cayman‑based segregated portfolio company, to raise up to US$60 million through the subscription of newly issued ordinary shares at US$4.00 each. The MOU grants Equator a 90‑day exclusivity period and is binding only on confidentiality, costs, and governing law.
The proceeds will be used almost entirely—92%—to fund Reitar’s participation in a consortium that seeks to acquire a controlling equity stake in a leading international logistics company with significant operations in Southeast Asia, Europe and the PRC. The remaining 8% will cover transaction fees and working capital.
The transaction is subject to a number of conditions precedent, including satisfactory due diligence, the execution of definitive agreements, regulatory approvals, and the target company achieving an audited EBITDA of at least US$8 million for its most recent fiscal year. The exclusivity period and the high subscription price reflect the premium investors are willing to pay for the strategic opportunity.
Reitar’s current financial profile shows a market capitalization of US$47.7 million and trailing‑twelve‑month revenue of US$48.6 million, but the company operates with a low operating margin of 2.74% and a net margin of 2.07%. The proposed $4.00 share price represents a substantial premium over the current trading price of US$0.82, underscoring the potential dilution for existing shareholders.
Management views the deal as a catalyst for global expansion. Chairman and CEO John Chan said the investment would provide the capital needed to pursue a transformative acquisition that would position Reitar as a truly global player in the logistics technology industry. The partnership with a private‑equity firm focused on logistics technology is expected to bring additional capital and strategic support.
Investors have expressed caution, citing the non‑binding nature of the MOU, the high share premium, and the stringent conditions precedent that must be met before the investment can close.
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