Karachi: Treet Corporation Limited has released a progress report detailing the utilization of funds from its rights issue, as mandated by the Companies (Further Issue of Shares) Regulations, 2020. This announcement comes as part of the company's compliance efforts following the rights issue approved by its Board of Directors on August 3, 2023.

The rights issue, which was allotted on January 16, 2024, involved an offer of 192.31 million shares at PKR 13 per share, including a premium of PKR 3 per share, generating a total consideration of approximately 2.50 billion PKR. The proceeds from this issuance were designated for specific purposes outlined in the Offer Document dated October 30, 2023.

According to the progress report, the major portion of the proceeds, amounting to approximately 1.90 billion PKR, was allocated to the repayment of debt and the realignment of the company's capital structure. This allocation, representing 76% of the total proceeds, has been fully utilized.

In addition to debt repayment, the report highlights that 370.00 million PKR, or 14.80% of the proceeds, was directed towards capacity enhancement in the razors segment, with a completion status of 70%. Furthermore, the development of a new product, the Twin Blade Rubberize Handle, has been allocated 230.00 million PKR, which constitutes 9.20% of the funds, and is reported to be 92% complete.

According to information available from the Pakistan Stock Exchange (PSX), Treet Corporation Limited has adhered strictly to the intended use of funds as previously disclosed, with no deviations noted from the planned allocations.

The company's adherence to its stated objectives underscores its commitment to maintaining transparency and fulfilling its obligations to stakeholders as outlined in the regulatory framework.