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Stratech Group in preliminary talks with potential investors
THE Stratech Group said that it "has had preliminary discussions with certain parties" on its plan to monetise intellectual properties by, among other options, seeking investments in the group.
It provided this update on Monday in response to rumours of its negotiations with parties regarding potential investments in the group.
"The company will make the appropriate disclosure should any discussion with parties proceed further," it said in an announcement.
To alleviate its cashflow issues and ensure the group can continue operating, its board of directors also discussed with the group's controlling shareholders, who agreed to expedite the injection of fresh funds into the group as loans pending a rights issue exercise to raise up to S$31 million in gross proceeds.
"The company plans to resolve any loan defaults, payroll issues including amounts due for central provident fund contributions, within the next two weeks," the group said.
Meanwhile, the group has applied to the Accounting and Corporate Regulatory Authority and the Singapore Exchange for extension of time to end of September to hold its annual general meeting and issue its annual report respectively.