LEARNING solutions company Alpha DX Group VVL : VVL 0% on Wednesday (Mar 2) said it has received a notice of termination from its sponsor, PrimePartners Corporate Finance (PPCF).

This follows a writ of summons and statement of claim filed by PPCF over unpaid sums from Alpha DX.

In a bourse filing, Alpha DX said PPCF is claiming S$604,844.76 in unpaid sums payable under agreements between the 2 companies, as well as S$111,789.75 in late interest charges on the unpaid invoices.

The company does not expect the claim amount, if materialised, to have a material financial impact on the group’s net tangible assets or earnings per share for the financial year ending Dec 31, 2022, and said it is currently in negotiations with PPCF over the claims.

As for the termination notice, Alpha DX said PPCF has provided a requisite notice of 3 months and will remain as the company’s sponsor until May 31, 2022, or any other earlier date as agreed between the parties.

Alpha DX said it has been in discussions with a few potential firms to undertake the continuing sponsorship activities in place of PPCF, and that discussions are still ongoing.

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The company, which is listed on the Catalist board of the Singapore Exchange (SGX), noted that the SGX may remove it from the official list if the company does not have a sponsor for more than 3 continuous months, as per Catalist listing rules.

In February, Alpha DX had also received a letter of demand for S$1.9 million from Kydon over unpaid acquisition amounts and interest charges.

Following the statement of claims and the letter of demand, Alpha DX – in its response to queries from SGX – said the group is still able to continue as a going concern and that the trading of the company’s shares should not be suspended.

Additionally, the company on Wednesday reported a net loss of S$744,966 for its fourth quarter ended Dec 31, 2021, from a net profit of S$10.9 million in the same period a year ago. 

Revenue for the quarter was at S$2.9 million. In the same period a year earlier, no revenue was recognised, as financial results of its oil and gas business had been presented as discontinued operations. 

The company had disposed of its US-based oil and gas business in May 2021 to focus on its digital transformation in learning and education business instead. 

Shares of Alpha DX were trading flat at S$0.102 as at the midday break on Wednesday. 

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