Q&M Dental CEO to take 29% stake in No Signboard Holdings

THE chief executive officer of Q&M Dental, Dr Ng Chin Siau, has entered into a conditional sale and purchase agreement on Monday (Mar 7) to take a 29 per cent stake in restaurant operator No Signboard Holdings for a total consideration of S$1.

In a bourse filing on Monday, No Signboard said that as a condition to the completion of the proposed share transfer, there would be an agreement for Dr Ng to extend an interest-free unsecured loan of S$2.6 million to the company.

Suspended Catalist-listed No Signboard's controlling shareholder - GuGong - currently holds around 54.9 per cent of the total issued shares in the company.

No Signboard's chief executive Lim Yong Sim, and chief operating officer Lim Lay Hoon are the shareholders and directors of GuGong.

GuGong has entered into the conditional agreement to sell 134.1 million No Signboard shares - representing a 29 per cent stake - to Dr Ng, who does not currently hold any shares in No Signboard.

Following the proposed share transfer, GuGong's stake in No Signboard would fall to 25.9 per cent.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

No Signboard said it has been informed by GuGong that it agreed to enter into the proposed share transfer in order to secure the S$2.6 million loan to assist the group with its working capital needs.

The 2-year loan would rank pari passu with the unsecured debts of No Signboard, and it would be used to discharge the current liabilities of the group and meet working capital requirements.

"For the avoidance of doubt, the loan would not be sufficient to meet the working capital requirements of the company for the next 12 months," No Signboard said. "As such, the company and GuGong are currently in negotiations with other investors to secure additional financing in order to meet the working capital needs of the group."

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 shares of No Signboard remain listed, and provision of evidence to Dr Ng that the total net liabilities of the group - excluding costs and expenses incurred in connection with the restructuring of its liabilities - does not exceed S$4.5 million.

No Signboard shares last traded at S$0.031 in January.