No Signboard to sell IP rights to controlling shareholder GuGong

SEAFOOD restaurant operator No Signboard : 1G6 0% has entered into an agreement to sell its intellectual property (IP) rights to controlling shareholder GuGong, for an amount not exceeding S$10,000.

This includes all its rights, title and interest in the trademarks and brand insignia associated with the business.

The shareholders and directors of GuGong are No Signboard’s executive chairman and chief executive officer Lim Yong Sim as well as chief operating officer and executive director Lim Lay Hoon.

In a bourse filing on Friday (Dec 9), the company it intends to rebrand its casual and quick-serve restaurant outlets operating under the “No Signboard” name.

“The rebranding exercise will provide the company with an opportunity to refresh itself and stay current. The Covid-19 pandemic has brought on significant changes in the competitive environment and the company’s customers and the re-branding exercise speaks to how the brand addresses stakeholders and customers’ needs amid the changing competitive landscape,” the company said.

Proceeds from the IP sale will go towards the rebranding exercise, it added.

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The IP disposal is conditional on GuGong voting in favour of proposals at an extraordinary general meeting, held on Nov 30, for share consolidation, transfer of controlling interest, and subscription shares allotment, among other things.

The Catalist-listed company is in the midst of a court-supervised restructuring exercise, which is to include a scheme of arrangement with the scheme creditors to reorganise the company’s liabilities and deleverage the balance sheet of the group.

As GuGong has fulfilled its voting undertaking, No Signboard is to comply with Catalist rules by – in addition to the IP disposal – appointing GuGong as a business consultant to the company for a period of no less than three years, for an annual fee to be mutually agreed by the parties.

Trading of No Signboard’s shares has been suspended since Jan 24.