How will Nexgram fund the RM61.53 million land purchase?

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Nexgram's Funding Strategy for Land Acquisition Remains Undetermined

Nexgram Holdings Bhd's proposed acquisition of a 10.03-hectare leasehold land in Melaka for RM61.53 million is currently awaiting a definitive funding plan. The company has indicated that the financing for this transaction may involve a combination of internally generated funds, external financing, or future corporate exercises. The precise breakdown of these funding sources and their specific impact on Nexgram's financial leverage will be disclosed at a later stage.
Proposed Land Acquisition Details

Nexgram's wholly-owned subsidiary, Nexgram Biomedic Sdn Bhd (NBSB), has entered into a proposal to acquire the leasehold land from the Melaka State Development Corporation (PKNM). The agreed purchase price for the 10.03-hectare site is RM61.53 million. This transaction is subject to regulatory approvals and further announcements from the company regarding its financial arrangements.
Contingent Liabilities and Guarantees

As part of the proposed acquisition, NBSB will not assume any significant contingent liabilities or guarantees beyond the standard apportionment of ongoing land-related expenses. These include quit rent, rates, assessments, taxes, and utility bills, which will be shared equally between NBSB and PKNM on the date vacant possession is granted.
Project Timeline and Completion

The commencement of any project on the acquired land is contingent upon the issuance of the land's title deed. Following this, the expected completion date for the project is projected to be six years after its commencement. This timeline indicates a long-term development plan for the Melaka site.
Impact on Gearing and Future Announcements

The ultimate effect of the RM61.53 million land purchase on Nexgram group's gearing ratio is dependent on the specific mix of funding utilized. Nexgram has stated that it will announce the chosen source of funds and the subsequent impact on its financial leverage in due course. This suggests that the company is still evaluating the most suitable financing options.

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How will Nexgram fund the RM61.53 million land purchase?

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