Qian Investment calls off equity deal with EMS Energy

QIAN Investment Holding has cancelled a deal that will inject S$7.5 million of new equity into Catalist-listed EMS Energy.

EMS Energy said after Wednesday's trading close that it received a notice on Tuesday from Qian Investment about its decision not to proceed with the proposed investment.

Consequently, the non-binding term sheet entered into by the two parties in late May has lapsed and ceased to be effective on Aug 28.

EMS Energy added that it will continue to source for other investments. The firm has been seeking to raise funds to strengthen its cash position.  In early June, independent auditor from BDO has raised doubts about the firm's ability to remain as a going concern, noting that it had ceased activities since September 2016 due to insufficient working capital.

Shares of EMS Energy have been suspended from trading since September 2016.