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Sino Grandness served letter of demand by shareholder

CHINESE canned vegetable and fruits producer Sino Grandness Food Industry Group said after trading hours on Wednesday that it has been served with a letter of demand on Jan 8 by Soleado Holdings.

Soleado Holdings, an investment holding company and a shareholder of Sino Grandness, had demanded payment of US$21.2 million and S$30,000 by Jan 21. This is for the outstanding loan principal amount, outstanding interest, default interests payable and reimbursement of the amount of all costs and expenses (including professional and legal fees incurred) in relation to a loan agreement dated April 13, 2016 as well as the costs and expenses for legal and professional fees under the repayment framework agreement dated July 20, 2017.

According to Sino Grandness, it is in negotiation with Soleado Holdings to “settle the matter amicably” and would make the necessary announcement as and when there is any material development.

Sino Grandness had called for a trading halt on Monday morning after being queried by the Singapore Exchange for a plunge in its share price.

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At about 9.40 am, SGX issued a query on the company's unusual share price and volume movement after the counter sank some 12.7 per cent or 1.7 Singapore cents to S$0.117 from its Friday close of S$0.134.

By the time Sino Grandness requested for a trading halt at 10.24 am, some 4.2 million of its shares had changed hands, versus an average three-month volume of 330,000.