RESTAURANT operator No Signboard (NSB) said investor Gazelle Ventures remains committed to the company’s efforts to resume trading and has also withdrawn its request for a return of funds.

The Catalist-listed company made the statement in a clarification announcement filed on the bourse late Friday (Nov 24).

It said that Gazelle “remains committed to the company’s efforts in obtaining a resumption of trading” and had provided “several undertakings” to NSB in connection with its trading resumption proposal submitted to the Singapore Exchange on Sep 27.

These include the entering of a side letter between NSB and Gazelle on Jul 27 confirming their mutual intention for the extension of the deadline from Dec 30, 2022 to Dec 30, 2023 for the completion of their implementation agreement.

Under that agreement announced in July 2022, Gazelle paid an initial S$500,000 in exchange for new shares in NSB and invested another S$4.5 million in the company through the subscription of convertible redeemable preference shares, for a full investment amount of S$5 million.

As reported by The Business Times, in May this year Gazelle sent NSB a letter of demand for a refund of S$5 million in funds disbursed to it, citing concerns over the risks of leaving such funds with the company given its ongoing disputes with GuGong, NSB’s controlling shareholder.

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In its clarification, NSB pointed out that Gazelle has withdrawn its request for the refund and that Gazelle has also agreed to release an aggregate amount of approximately S$150,000 out of the full investment amount in order to pay the salaries of NSB’s employees, landlords and other creditors.

NSB also highlighted that Gazelle had entered into a deed of undertaking in favour of it on Sep 9. Under the terms of the deed, Gazelle will be obligated to indemnify the company for certain relevant losses incurred by the company subject to certain conditions, including the obtaining of the trading resumption.

“(Both NSB and Gazelle) have been working together closely towards a resumption of trade…and will keep shareholders updated as and when there are any material developments,” said the announcement.

Gazelle had earlier sought a precautionary injunction against the three parties to stop them from passing resolutions requisitioned by GuGong. These include, among other things, a resolution to replace all of No Signboard’s current directors.

On Nov 20, the Singapore High Court ruled in favour of NSB, its chief executive officer and chairman Lim Yong Sim, and GuGong, in their dispute against Gazelle Ventures.

Trading in the shares of NSB has been suspended since January 2022.