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JAM | Mar 22, 2023

Way cleared for 138 Student Living  APO

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EGM votes in favour of 5 resolutions paving the way for APO

External view of student accommodation operated by 138 Student Living at the University of the West Indies, Mona campus. (Photo: 138studentliving.com)

Durrant Pate/Contributor

Shareholders of university student housing developer and operator, 138 Student Living (138SL) have voted in favour of plans for raising capital through an additional public offer (APO) of shares in the company.

The vote took place at an emergency general meeting (EGM), convened on Monday at the Rio Bueno Suite, The Jamaica Pegasus hotel in New Kingston. Shareholders voted in favour of five resolutions paving the way for the APO.

The resolutions were earlier approved by the board of directors at its meeting on February 7. The resolutions are as follows:

  • That the authorised share capital of the company be increased from 480,500,000 ordinary shares at no par value and 94,500,000 cumulative redeemable preference shares to unlimited authorised share capital.
  • That the company be and is hereby authorised to issue up to 775,000,000 ordinary shares by way of an offer for subscription to the public pursuant to a prospectus (the APO) in lieu of a rights issue to existing stockholders.
  • That the Board of Directors of the Company and/or any duly appointed Committee of the Board of Directors be and is hereby authorised to determine in their discretion any terms and conditions relating to the APO.
  • That any pre-emption rights to which the existing stockholders may be entitled, howsoever arising, be and are hereby dis-applied for the purposes of the APO.
  • That all ordinary shares issued in the APO once issued and allotted be and are hereby converted into stock units.

Proceeds from APO

The proceeds of the planned APO are needed to pay down debt while financing current and future development. 138SL, which was founded on August 15, 2014 and is headquartered in Kingston last went to the equities market in November 2014 when it went public through its successful IPO of shares raising J$562.9 million from a float of ordinary and redeemable preference shares. 

The IPO includes 98.6 million ordinary shares priced at J$4 and 33.68 million floating rate preference shares for J$5 each. 138SL has hired GK Capital Management Limited, which will review strategic equity financing options for 138SL including the planned APO.

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