Transcorp inks non-binding letter of intent to raise S$1m

CATALIST-LISTED Transcorp Holdings has on Jan 17 signed a non-binding letter of intent with undisclosed investors to raise about S$1 million, its board of directors said on Tuesday.

It is non-binding in terms of fundraising execution, but comes with a confidentiality clause for the investors and an exclusivity clause for the period of due diligence, according to the filing with the Singapore bourse.

The board will continue to discuss and review the fundraising structure and terms of placement or investment, with the investors.

The fundraising exercise is subject to satisfactory due diligence by the investors and the signing of a legally binding placement or investment agreement, said Transcorp.

The company had in July last year proposed to raise S$550,000 through a placement of 110 million new shares at an issue price of 0.5 Singapore cent apiece to two private investors.

The deal did not go through as Transcorp was unable to obtain a loan from the placees and a substantial shareholder to fund the extraordinary general meeting and professional service fees needed to move forward with the placement.

Its fundraising efforts come amid claims from various creditors. Fuji Xerox Singapore is claiming S$48,736 from Transcorp, while Ace Financial Services is claiming S$290,188.

Transcorp's board had on Dec 24 recommended that trading of its shares be suspended until it resolved its liquidity issues. Its shares last traded unchanged at S$0.005 on Dec 3.