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Artivision Tech narrows Q4 loss, RTO 'in progress'
VIDEO solutions provider Artivision Technologies has narrowed its total comprehensive loss for the fourth quarter ended March 31 to S$1.22 million, compared to a S$2.44 million loss for the year-ago period.
Full-year total comprehensive loss narrowed to S$2.76 million from S$7.07 million the year before.
Artivision ceased business operations and became a cash company with effect from Feb 27, 2018, originally having 12 months from that date to secure a new business and stay listed on the Catalist board. In May, it entered into a reverse takeover (RTO) deal to give up a 70 per cent stake in exchange for electronic payment and online retail business Mobile Credit Payment.
On Apr 15, 2019, Artivision said that Singapore Exchange Securities Trading (SGX-ST) had no objections to a six-month deadline extension, giving the company up till Aug 31 to complete the proposed acquisition and meet listing requirements.
In its results release, Artivision said: "The proposed acquisition and the due diligence are in progress and the company will make the necessary announcement when there are any material developments on the transaction."
Outstanding bonds of S$6.9 million and corresponding accrued interests which mature on March 31, 2019, have been extended to March 31, 2020, it added.
Artivision's controlling shareholder Ching Chiat Kwong had provided an undertaking that adequate funds, if required, will be provided to Artivision to enable it to continue operating as a going concern. Mr Ching accordingly entered an unsecured loan agreement with the company in March 2019, granting a S$300,000 loan to be disbursed in monthly instalments of S$50,000 from March 2019, at an interest rate of 10 per cent per annum.
Artivision's cash and cash equivalents decreased to S$1 million as at March 31, 2019, down from S$2.3 million a year ago. This was due to net cash outflow of S$1.7 million from operating activities, and S$0.6 million from the de-consolidation of subsidiary Colibri Assembly Thailand, partially offset by the receipt of the final tranche consideration of S$1 million from the disposal of Artimedia Group.