Troubled No Signboard Holdings has entered a conditional loan agreement with Bryan Lim Soon Fang as part of his agreement to acquire a 22 percent stake in the company from shareholder GuGong, the iconic Singapore chilli crab chain said in a filing to SGX Friday.
“As part of the terms of the proposed share transfer, the lender has agreed to provide the conditional loan to support the group’s working capital requirements as the group tides through the challenges of the pandemic, and places the group in a position to ramp up the operations of its flagship No Signboard seafood restaurants once social distancing measures are lifted,” No Signboard said.
Under the deal, Lim will provide a S$1.9 million interest-free unsecured loan, which will be repayable in a lump sum on demand any time after two years following the disbursement, the filing said.
The funding will be used to discharge current liabilities and for working capital needs, the filing said.
Together with the S$2.6 million interest-free loan from Ng Chin Siau, the company will receive S$4.5 million in interest-free unsecured financing, assuming the conditions are met, the filing said.
Once the loan is disbursed and the shares are transferred, Lim will become a controlling shareholder of No Signboard, the filing said.