RML, or Raimon Land Public Company Limited, has clarified issues raised by the Stock Exchange of Thailand (SET) regarding advance payments for investments, adjustments to convertible notes, and investment obligations, confirming that operations are conducted in accordance with the law and are transparent at every step. The company emphasized that the investments do not impact its financial position and announced plans to push the 'OCC' (One City Centre) building, valued at 14.8 billion baht, into a REIT to create long-term financial stability.

Mr. Sorapong Ma Muang, Chief Financial Officer of RML, stated, "RML adheres to principles of transparent and prudent operations, strictly complying with legal requirements and regulations for the utmost benefit of shareholders and all stakeholders. Every investment decision is made through careful risk assessment, considering long-term value. We believe our investments will secure the company's stability in both financial aspects and future growth opportunities."

The company would like to clarify important details as follows:

1. Advance Payments for Investments

1.1 The company allocates advance expenses to support a new mixed-use project set to launch in 2025.

The company plans to launch a new mixed-use project in the first quarter of 2025. To support this project, it has allocated a certain amount as advance expenses (Pre-Development Cost), which is a temporary allocation until a joint venture agreement is signed. The funds are held with a trusted executive director from both the company and the landowner. The primary purpose of this allocation is to reduce investment risks, assure the landowner of the company's readiness to invest, and prevent the landowner from collaborating with other investors. This action demonstrates the company's commitment to responsibly developing the project while protecting the interests of investors and shareholders with transparency and good management. The assigned executive director has no vested interests or personal relationships with the company's directors, executives, or major shareholders to ensure that operations are transparent and build confidence among all stakeholders.

1.2 Advance payments for investments in joint venture projects

The company clarifies that the investment in the land was a resolution by shareholders and the previous management since September 2019 to develop a condominium project in the Sukhumvit area. The company has partially paid a deposit for the land. After the new management took over, they reviewed and reassessed the feasibility of the project, discovering certain limitations in development. Consequently, the company set aside an impairment allowance to reflect the risks and expected recoverable value. The company is confident that the impairment allowance is appropriate, sufficient, and in line with strict accounting standards. Currently, the company is negotiating new terms, expecting to reach a conclusion within the first quarter of 2025.

2. Investment in the company's convertible notes in the United States

In 2022, the company co-invested in the convertible notes of Nautilus Data Technologies, Inc., alongside major technology investors from the United States and Singapore. Nautilus operates a data center business and plans to IPO on Nasdaq in the next two years, thus restructuring its finances by converting debt to equity and raising additional funds from shareholders, with some major shareholders already investing further. Additionally, there are major technology investors interested in co-investing in Nautilus, which is currently under negotiation to finalize the investment plan.

However, RML and some shareholders have not yet made additional investments as proposed by Nautilus, as they are seeking further information and carefully considering the project. The company prioritizes risk assessment and investment suitability to ensure that decisions align with the best interests of the company and its shareholders, proceeding cautiously and transparently at every step.

3. Signing of the joint venture agreement for the project set to launch in 2025

The company has signed a joint venture agreement to develop a villa-type residential project, with plans to launch in the first quarter of 2025. This project is a collaboration with investors, with the company responsible for overall management. The project will be developed in two phases, starting with the first phase, which the company is currently adjusting to comply with new legal requirements regarding land use in Phuket, effective December 13, 2024. Both the company and the joint venture partners are committed to proceeding with this project as planned, recognizing its business potential and opportunities for stable and sustainable profits in the future.

The company remains committed to careful and sustainable financial planning to strengthen its financial position, preparing to issue a new bond series or enter into additional loan agreements with leading financial institutions to maintain liquidity. It is also accelerating the liquidation of completed real estate project stocks to increase cash flow and maintain financial ratios at satisfactory levels. Furthermore, the company is preparing to convert the 'OCC' building, valued at 14.8 billion baht, into a real estate investment trust (REIT). Currently, 'OCC' has an occupancy rate close to 80% and has attracted interest from both domestic and international investors. The company is in negotiations and due diligence processes with five major investors, expecting to close the deal and establish the REIT within 2025.

Mr. Sorapong concluded, "2025 will be a significant year for RML, with the 'OCC' building being a crucial element that will help the company return to profitability while strengthening its financial position. Additionally, the company plans to continuously launch new projects to create financial stability and execute the planned turnaround strategy. All these actions will help RML achieve long-term stability and sustainability."