No Signboard reinstates agreements with largest shareholder GuGong
Tay Peck Gek
RESTAURANT operator No Signboard has reinstated the agreement to engage largest shareholder GuGong to provide services for operational matters as well as that to sell its trademarks and brand name to GuGong.
In an update to the bourse on Sunday (Sep 24), the Catalist-listed company said the parties have consented to reinstate the independent contractor agreement entered into on Dec 9, 2022 to engage GuGong’s services for operational matters.
The services that GuGong is to render include setting up new outlets in Asia, identifying potential opportunities in line with its strategic plan, and assisting in the transition of daily operations to the new management.
While the High Court granted an order for the reinstatement of this agreement at the hearing on Sep 20, No Signboard said the judge did not, as requested by GuGong, declare that this agreement was wrongfully terminated by the restaurant operator.
No Signboard has also reinstated its sale and purchase agreement – entered the same day as the independent contractor – to sell GuGong all its rights, title and interest in the trademarks and brand insignia associated with the enterprise and operations of its seafood and restaurant business.
A hearing has been fixed by the High Court on Monday to deal with the withdrawal of the injunction application in relation to the intellectual property sale.
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Both agreements were formerly announced by No Signboard to have been terminated in March 2023, a move it then said would purportedly “expedite the completion” of a proposed investment.
GuGong counts suspended chief executive Lim Yong Sim and former chief operating officer Lim Lay Hoon as directors and shareholders.
No Signboard has made the news in recent years over its struggle in the pandemic years to a requisition from GuGong to oust the board, and the arrest of substantial shareholder and former director Su Haijin in the billion-dollar money-laundering bust.
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Shares of No Signboard have been suspended from trading since Jan 24, 2022.
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