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Memstar in talks to try to recover US$5m deposit from failed RTO deal

MEMSTAR Technology is in talks with the counterparties of a failed reverse takeover (RTO) in an attempt to recover a US$5 million deposit, the company said on Monday.

Memstar said on April 7 that it had terminated a planned RTO that would have injected the assets of Longmen Group into Memstar amid concerns that Longmen and its vendors were facing fund-raising challenges.

Memstar had paid a US$5 million refundable deposit for the deal.

In response to a query by Singapore Exchange, Memstar said it is still in talks to try to recover that deposit, and will update shareholders of any material developments.