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MOU, loan agreement inked in Nov last year terminated: Ace Achieve Infocom
A MEMORANDUM of understanding (MOU) and loan agreement that Ace Achieve Infocom entered into have been terminated after its shares were suspended from trading.
Ace said that its board continues to search for new investor(s) 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 as a going concern unless replacement funding sources are available to it to meet its financial obligations, Ace flagged.
On Nov 14 last year, Ace entered into an agreement to receive a loan of S$500,000 from China Tian Ma Travel Group. The loan agreement was entered into at the same time that it established an MOU to acquire a 36 per cent stake in online trading and payment solutions firm GT Dollar from Zhang Bauluo.
Ace had entered into these agreements before its shares were suspended from trading on Nov 23 last year.
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 management had exhausted all avenues to revive... the MOU.”
It added that it is now currently in negotiations with a new investor who is willing to fund the outstanding professional fees under the company’s current conditions.