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Accrelist scraps plans to convert S$4m convertible loan
CATALIST-LISTED Accrelist on Tuesday said it has scrapped plans to exercise its conversion right under the S$4 million convertible loan extended by Singapore Rixin Zhonghe Investment.
The firm had earlier announced plans to convert the loan but decided not to proceed with it, taking into consideration the "continued evolving uncertainty" of the long-term impact of Covid-19 on general business sentiment, said Accrelist in a regulatory filing.
It aims to minimise the introduction of any material changes affecting the firm "as far as possible" so as to provide stability amid the pandemic.
Accrelist will continue to make repayment of the amount outstanding under the convertible loan, including any interest payable, to Singapore Rixin Zhonghe Investment. To date, the firm has made payment of S$3.7 million in cash and will make repayment of the remaining S$616,776 outstanding by Dec 31, 2020 in cash.
Following full repayment, Accrelist's obligations under the convertible loan agreement, entered into in 2016, will be discharged in full.
Shares of Accrelist last traded at 3.4 Singapore cents on Sept 23.