Agreement with the CEO of Q&M Dental “key element” of the proposal to resume operations: no sign

SINGAPORE (THE BUSINESS TIMES) – No Signboard Holdings said the decision to reach an agreement with Q&M Dental chief executive Ng Chin Siau is a key part of the company’s proposal to resume trading in its shares, which has been suspended since the end of January.

Mr Ng had entered into a sale and purchase agreement (SPA) earlier this month to take a 29% stake in the restaurant for total consideration of $1.

There was also an agreement for Mr. Ng to provide an interest-free unsecured loan of $2.6 million to the company as a condition of completing the proposed share transfer.

In response to questions from SGX Regulation (SGX RegCo) on Thursday March 10, the restaurateur said it, along with its majority shareholder GuGong, is currently focused on finalizing agreements with Ng and investors to raise the funding the group has need. to resolve its business continuity issues.

If No Signboard is unable to secure the loan agreements with Mr. Ng and other investors to raise the necessary financing, then it will discuss other alternatives with its financial adviser.

GuGong currently owns a 54.9% stake in No Signboard. After the share transfer, its stake will drop to just 25.9%.

In its response to questions from the stock market regulator, No Signboard said disbursement of the $2.6 million loan will be conditional on the company and GuGong’s ability to secure additional funding to address business continuity issues. group operation.

The company currently expects to receive the funds following the approval of its proposal to resume operations and the completion of the proposed share transfer.

When asked to explain how the consideration of $1 for a 29% stake was obtained, No Signboard said the loan agreement would provide the company with “a substantial injection of interest-free and non-interest financing. guaranteed” to meet its working capital needs, especially since it sounded a warning on January 24 that it is unable to demonstrate its ability to continue in business.

No Signboard said it is aware of the listing rules and will detail its plans and milestones in its proposal to resume operations which will be submitted to SGX RegCo upon signing the relevant investor agreements.

No Signboard and the company are currently in “advanced negotiations” with investors to secure additional financing to meet working capital requirements, and intend to “agree on the terms of the loan agreements with the respective investors. “which will be part of the business takeover proposal,” the company said.

No Signboard said there was no agreement for Mr. Ng or his nominees to be appointed to the board or to key leadership positions.

The company said it is committed to focusing on its existing business and expects demand to improve as Covid-19 related restrictions gradually ease, such as those related to travel and Restoration.

The company said it may explore new areas of opportunity to increase its revenue streams, although it has not identified or entered into negotiations in this regard.

Mr Ng’s plans, the company said, are “in line” with those of the company, adding that his “main motivation” for entering the share transfer is to “revive an iconic Singapore brand”.

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