INTEREST earned from proceeds raised in the initial public offering (IPO) of blank-cheque company Vertex Technology Acquisition Corporation : VT1 0% (VTAC) has been utilised to cover costs and other expenses.

This was disclosed in an extraordinary general meeting (EGM) circular on Thursday (Nov 9). In the document, VTAC indicated that S$10.4 million in interest earned on the funds placed in the escrow account of the special-purpose acquisition company (Spac) had been drawn down to pay “a substantial portion of the cost” incurred in relation to the administrative expenses of the IPO, general working capital and related expenses, and professional fees for the purposes of identifying and completing the proposed business combination with 17Live.

VTAC had said last month that it had not used any of the interest and income derived from amounts placed in the escrow account as at Sep 30. But it added that it planned to draw down all the interest earned to cover costs and expenses, as is permitted under the Singapore Exchange’s listing manual.