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Starland decides not to convert S$1.03 million loan into Ayondo shares; will be repaid in cash after IPO

CATALIST-listed developer Starland Holdings has decided not to convert a S$1.027 million loan into shares in financial technology firm Ayondo.

All of the redeemable convertible loan, as well as accrued and unpaid interest, will instead be repayable in cash within 14 days of Ayondo's admission to the Catalist board, Starland's board of directors said on Friday, in an update on settlement agreements after a failed reverse takeover in 2017.

The settlement deal had given Starland the option of converting S$992,000 in expenses and another S$35,000 in interest into new ordinary Ayondo shares at a 33 per cent discount to Ayondo's initial public offering (IPO) price.

But Starland said that the company decided against this, "having considered its core operating business".

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Another S$1.141 million of expenses, which Ayondo was to reimburse to Starland, has been automatically converted into about 6.5 million new Ayondo shares and issued to Starland in full settlement, the company added.

Europe-based, loss-making Ayondo registered the paperwork for IPO here on March 15, with shares debuting at an offer price of S$0.26 a share and trading slated to start on March 26.

Ayondo had previously tried to get listed through a proposed S$158 million reverse takeover deal with Starland, but that fell through after the conditions precedent were not fulfilled or waived by the long-stop date of Sept 23, 2017.

Starland then went into talks with Ayondo over the expenses of about S$2.48 million that were incurred by both partes with the proposed acquisition.

"The company has also disclosed in the announcement that the company had made full provision for the S$992,000 million receivable from Ayondo and had expensed off the acquisition expenses in the financial statements up to six month ended June 30, 2017," said the Starland board.

"The recovery of the expenses, arising from the abovementioned settlement agreements, will be reflected and reported in subsequent financial results of the company."