Troubled No Signboard Holdings said Tuesday it was “cautiously optimistic,” barring unforeseen circumstances, that the loans from two new prospective controlling shareholders would assist in meeting its working capital needs.
That was in response to a query from SGX on whether the loans would be sufficient to resolve the iconic chilli crab restauranteur’s going concern issue.
No Signboard has entered deals to receive interest-free unsecured loans of S$1.9 million from Bryan Lim Soon Fang as part of his agreement to acquire a 22 percent stake in the company from shareholder GuGong, and of S$2.6 million from Q & M Dental Group (Singapore)‘s founder Ng Chin Siau in exchange for a 29 percent stake from GuGong.
“The loans from Dr. Ng. and Mr. Lim will provide the company with the required funds to continue the operations and pay its liabilities as and when they fall due,” No Signboard said.
“In addition to the loans to be provided by Dr. Ng and Mr. Lim, the company has closed down unprofitable businesses, such as Mom’s Touch and Danish Breweries, and has embarked on various cost cutting measures in order to significantly reduce its cash burn rate,” No Signboard said. “The company, together with Dr. Ng and Mr. Lim, have also been engaged in discussions with its principal banker for continued support.”
Neither Ng nor Lim plan currently to nominate any directors to the company’s board or as key management personnel, No Signboard said.
“Both investors are aligned with the company’s business plan and intend to provide advice and support
to the group as it tides through the challenges of the pandemic, and prepares to ramp up the operations
of its flagship No Signboard seafood restaurants once social distancing measures are lifted,” No Signboard said.