Singapore-style coffee shop operator Kimly said Tuesday that it has received the first installment of S$1.4 million from the retroactive cancellation of its acquisition of beverage distributor Asian Story Corp., or ASC.
In July, Kimly had paid S$16 million to buy the beverage distributor from Wang Chia Ye, with the potential for earn-out payments.
But in late November, Kimly announced that it would retroactively cancel the acquisition, known as entering a deed of rescission, after Pokka Corp. (Singapore) said it intended to terminate its manufacturing agreement with ASC with six months’ notice.
Under the rescission, Wang has repaid S$12 million to Kimly, with the balance to be repaid over three years.
On Tuesday, Kimly said in a filing to SGX that it received the first installment, which hadn’t been due until 29 November 2019. The remaining balance outstanding is due to be repaid in equal installements of S$1.3 million on 29 November 2020 and 29 November 2021, it said.
Kimly also has substituted the security it holds over ASC’s shares and book debts for the amount still owed with various quoted equity securities held by Wang, the filing to SGX said.
It added that any dividends from the quoted securities would be applied toward repaying the outstanding debt.
ASC markets and sells nine different drinks under its “Asian Story” brand, including Winter Melon Tea and Bandung, and also sells bottled water under the “Simply Water” brand.