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8Telecom terminates subscription agreement with Tai Yang Technology
MAINBOARD-LISTED 8Telecom International Holdings entered into an agreement with Tai Yang Technology on Monday after the market closed to formally terminate an earlier subscription agreement announced on June 25, under which 5.6 million new ordinary shares in the company would have been issued to Tai Yang for an aggregate consideration of S$576,800.
Following the execution of the termination agreement, 8Telecom's and Tai Yang's respective obligations and liabilities under the earlier subscription shall cease, 8Telecom said in its announcement of the move on Monday.
8Telecom said the subscription agreement was terminated with mutual consent and Tai Yang has agreed to provide the sum equivalent to the subscription consideration as a loan to 8Telecom, for a period of three months from the date of the termination agreement, at zero interest rate.
"The company will continue to explore other potential strategic investments and modes of capital fundraising with a view to enhance the operations and growth of the company," said 8Telecom. It added that it is not expected to incur any costs, other than professional fees, arising from the termination agreement, and that the termination shall not have any material impact on its business operation and financial position.
8Telecom also clarified that its subscription agreement with Top Capital Securities will not be affected by this termination agreement and will continue to subsist. The June 25 announcement was for the proposed placement of an aggregate of 22.48 million new ordinary shares, with Top Capital Securities being one of the top subscribers.