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Artivision gets 6-month extension to complete reverse takeover deal
CATALIST-LISTED video solutions provider Artivision Technologies has obtained a further six-month extension to complete a reverse takeover (RTO) deal where it will give up a 70 per cent stake in exchange for electronic payment and online retail business Mobile Credit Payment (MC Payment).
Artivision applied for the extension, from Aug 31, 2019 to Feb 29, 2020, in part due to MC Payment having difficulties in raising pre-IPO (initial public offering) funds.
It said market conditions have been unfavourable and has worsened due to prevailing international trade tensions and weaker economic performance in Singapore.
The extension also gives Artivision time to meet Catalist board's new listing rule as the firm had ceased business operations and became a cash company on Feb 27, 2018. It originally had 12 months from that date to secure a new business and stay listed.
The MC Payment RTO was first announced in May 2018.
Other reasons cited by Artivision for the extension were its definitive sales and purchase agreement for the deal, and additional appointments of foreign legal advisers to conduct legal due diligence on MC Payment's foreign subsidiaries and associated company.
The extension also allows Artivision to stay listed, which is a requirement for completing the deal.
Its controlling shareholder, Ching Chiat Kwong, has also provided a financial undertaking to fund payment of the group's liabilities as and when they are due. This allows Artivision to continue as a going concern until the RTO's completion.
Artivision had in September announced it lowered the maximum total consideration for all shares and convertible bonds issued by MC Payment to about S$93.3 million.
The acquisition now excluded iFashion Group, an online fashion venture platform that MC Payment had been in the process of acquiring.
Artivision shares last traded at 0.4 Singapore cent on Sept 26.