No Signboard controlling shareholder makes second share transfer for second conditional loan
Claudia Tan HS
RESTAURANT operator No Signboard Holdings' controlling shareholder GuGong has entered into a second conditional sale and purchase agreement on Friday (Mar 11) to sell a 22 per cent stake in the company to private investor Bryan Lim Soon Fang for S$1.
As a condition to the completion of the proposed share transfer, Lim will extend an interest-free unsecured loan of an aggregate principal amount of S$1.9 million.
Earlier this week, the company had entered into a separate deal with Q&M Dental's chief executive Ng Chin Siau. Under the agreement, Ng will take a 29 per cent stake in No Signboard for S$1.
There was also an agreement for Ng to extend an interest-free unsecured loan of S$2.6 million to the company as a condition for the completion of the proposed share transfer.
GuGong currently holds around 54.9 per cent of the total issued shares in the company.
The 2 loans expected to be granted by Lim and Ng will allow the company to obtain a total of S$4.5 million in interest-free and unsecured financing, which is expected to assist in meeting the group's working capital requirements, said No Signboard in its bourse filing.
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The 2 deals are separate and not inter-conditional upon each other, noted the company.
The proposed share transfer is subject to approval being obtained from the Singapore Exchange as the shares of No Signboard are suspended.
Other conditions include that the total net liabilities of the group - excluding costs and expenses incurred in connection with the proposed share transfer and its restructuring exercise - does not exceed S$4.5 million.
No Signboard shares last traded at S$0.031 in January.
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