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SunMoon to pay S$2m to settle legal dispute with corporate advisory firm
SunMoon Food Company has reached full and final settlement to pay nTan Corporate Advisory a sum of S$2.1 million plus 7 per cent GST in instalments in relation to a suit.
The settlement may have a significant impact on the company's financial performance for the current financial year but it was a positive outcome as it allowed the board and management certainty to focus on driving its business, said SunMoon in an announcement.
The food distributor and food ingredients maker said it had provided for half of the settlement sum in previous years, and that all payments will be made from internal resources.
nTan will discontinue the suit and has confirmed that it has no further claim against the firm for any professional fees, said the firm.
Shares of SunMoon was last traded at 5.2 Singapore cents. Trading in its shares were halted on October 12 and two days later the company requested for the trading halt to be converted to a voluntary suspension pending an announcement by a key shareholder.
The shareholder, First Alverstone Capital, was recently queried by the Monetary Authority of Singapore in relation to notifications of change in shareholding interests on September 18.
The firm had earlier said that the request for voluntary suspension was meant to avoid market speculations and uncertainties given the unknown outcome of the queries.