Nutryfarm to receive outstanding 60m yuan for failed First Linkage acquisition

NUTRYFARM International AZT on Sept 30 reached agreements for the repayment of an outstanding deposit refund owed by the owner of First Linkage, as well as for the refund of equipment previously acquired from the company's subsidiary.

In a bourse filing late on Monday, the group said an outstanding HK$59.2 million (S$10.3 million) was due from First Linkage's owner Wang Xiaoxin as at Jun 30, 2021, following the termination of Nutryfarm's proposed acquisition of the tech company.

Under the repayment agreement Mr Wang will pay 60 million yuan (S$12.6 million) to Nutryfarm's indirect wholly owned subsidiary, LottVision Internet Management, as a full and final settlement for the outstanding deposit refund. Repayment of this sum will take place over three and a half years from Oct 1, 2021.

First Linkage's subsidiary Beijing Zhonglian Shengtong Internet Technology will also refund Nutryfarm's indirect wholly owned subsidiary, WiVision Network Digital Video Technology, 33.5 million yuan for the latter company's return of Internet hardware and software equipment.

WiVision first acquired the equipment in April 2019. Under the latest agreement it will also receive the agreed refund amount over a three-and-a-half-year period from Oct 1, 2021.

In September this year Nutryfarm was issued a notice of compliance from the Singapore Exchange Regulation (SGX RegCo) to appoint a suitable independent reviewer to conduct an investigation over two key issues.

One of the issues was regarding an assessment into the payment of a significant HK$91.4 million refundable deposit which LottVision made in relation to the proposed acquisition of First Linkage.

Nutryfarm closed Monday down 1 Singapore cent or 2.9 per cent at 33.5 Singapore cents, before the news.

READ MORE:

• SGX rejects Nutryfarm's 90m yuan acquisition amid concerns over foreign ownership workaround
• Nutryfarm International unit to acquire stake in First Linkage