The proposed disposal is expected to strengthen the cash position, improve liquidity of ecoWise.

ecoWise Holdings says its wholly-owned subsidiary, Sunrich Integrated, has entered into agreements for the disposal of its property in Sabah, Malaysia, according to a Nov 25 release.

The property, comprising a leasehold land with double storey detached office cum warehouse located at Lot 6 and Lot 7,  has purchase considerations of RM4.7 million ($1.4 million) and RM5.8 million ($1.8 million) respectively. 

The property contains a combined land area of approximately 36,313 sqf and built-up area of 30,784 sqf. The property is under 99-year leasehold expiring on Dec 31, 2074. 

According to the group, the proposed disposal is expected to strengthen the cash position, improve liquidity of ecoWise, and is part of the group’s efforts to monetise non-core assets in Malaysia. 

The proceeds of the proposed disposal is set to go towards the repayment of bank borrowings and general working capital requirements of the group. 

On a pro forma basis, had the disposal been completed on April 30, the group’s FY2024 net tangible assets (NTA) would have stood at $15.8 million, instead of $15.2 million. The group’s NTA per share would have stood at 1.67 cents, instead of 1.60 cents. 

Had the disposal been completed on May 1, 2023, the group’s loss for FY2024 would have stood at $656,000, instead of a loss of $1.3 million. The group’s loss per share would have stood at 0.07 cents, instead of 0.14 cents. 

Shares in ecoWise closed flat at 7.8 cents on Nov 25.