Lifebrandz abandons proposed placement of 167m new shares

LIFEBRANDZ Ltd on Tuesday morning said that the proposed placement of 167 million new ordinary shares has been terminated by mutual agreement of the parties involved.

The financially beleaguered firm had on Nov 15 conditionally agreed to issue to Australia-incorporated Pramana Capital Pty Ltd 167 million new shares for S$501,000, or 0.3 Singapore cent per share - representing a premium of 20 per cent to the shares' average price of 0.25 Singapore cent on Nov 15.

With Tuesday's announcement, the placement agreement will no longer have any effect; and the parties shall have no further obligations or claims against each other, it said in a filing to the bourse operator.

The termination of the placement agreement is not expected to have any material effect on the company's performance for the financial year ending July 31, 2017.