Sino Grandness points to demand letter from lender Soleado after stock fall

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Sino Grandness pointed on Wednesday to a letter of demand from lender Soleado Holdings on 8 January for a loan repayment. That was in response to queries from SGX on a sharp drop in its share price on Monday.

The board was notified on 12 January, it said.

Shares of Sino Grandness tumbled to as low as S$0.115 on Monday, before retracing some losses to S$0.117, down 12.69 percent, in a surge of volume, before they requested a trading halt in the middle of the morning session.

Soleado has demanded payment of US$21.19 million and S$30,000 by 21 January for outstanding loan principal amount, interest, default interests payable and reimbursement of expenses, including legal fees, Sino Grandness said in a separate filing to SGX on Wednesday.

“The company has been in negotiation with the lender to settle the matter amicably,” it said.

Sino Grandness also told SGX that it has agreed on Monday to an amended bond repayment extension proposal for the bonds issued by its indirect wholly owned subsidiary Garden Fresh (HK) Fruit & Vegetable Beverage. The agreement was with all parties, including  Goldman Sachs Investments Holdings (Asia) and CDIB Capital Investment, it said.

It said an announcement on that agreement would be released shortly, with the trading halt on its shares to continue until then.

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