Ace Achieve Infocom warns it may be unable to operate as a going concern

Singapopre

A MEMORANDUM of understanding (MOU) and loan agreement that Ace Achieve Infocom entered into have been terminated after its shares were suspended from trading, with the company warning that it may not be able to operate as a going concern unless it finds replacement funding.

Ace said its board continues to search for one or more new investors to fund its outstanding audit, compliance and other professional fees needed to maintain its listing and compliance status. The company may no longer be able to operate unless replacement funding sources are available to the company to meet its financial obligations, it said.

On Nov 14 last year, Ace had entered into an agreement to receive a loan of S$500,000 from China Tian Ma (TM) Travel Group. The loan agreement was entered into at the same time that it signed an MOU to acquire a 36 per cent stake in online trading and payment-solutions firm GT Dollar from Zhang Bauluo.

Then on Nov 23, Ace's shares were suspended from trading.

With the termination of the MOU, the company's timeline to complete its annual audit and to conduct its annual general meeting will be delayed.

Ace said: "Due to the suspension of the company's shares, the counterparty was not able to obtain the necessary securities for the loan agreement as contemplated during the negotiation of the MOU and loan agreement. The company tried to negotiate with GT and China TM to continue with the deal, but could not reach consensus with the counterparties.

"The board accepted the termination on April 1, after the management had exhausted all avenues to revive ... the MOU."

Ace added that it is now in negotiations with a new investor who is willing to fund the outstanding professional fees under the company's current conditions.

Ace also highlighted that its two Singapore resident independent directors have been in active discussions with the Singapore Exchange on the company's plans to resume trading of its suspended shares and to fulfill its listing rule obligations.