No Signboard terminates loan deal with Q&M Dental’s founder

The No Signboard Seafood outlet at VivoCity mall in Singapore; taken in 2018.The No Signboard Seafood outlet at VivoCity mall in Singapore; taken in 2018.

Troubled No Signboard Holdings has terminated its loan deals with two investors, including the founder of Q & M Dental’s founder, after entering a rescue deal with a larger investor, according to a filing to SGX Wednesday.

The iconic Singapore chilli crab maker has been badly hit by the Covid-19 pandemic, which brought lockdowns that closed its outlets temporarily, restrictions on group sizes in restaurants, and border controls which kept most tourists and travellers out of the city-state.

The two loan agreements were terminated as the conditions of the agreements could not be completed within the originally planned timelines, No Signboard said.

In March, No Signboard had entered into a conditional loan agreement with Q & M Dental Group (Singapore)‘s founder Ng Chin Siau for an interest-free unsecured loan of S$2.6 million; that deal had included controlling shareholder GuGong transferring a 29 percent stake in the company to Ng, who had said his motivation was reviving the Singapore brand.

In a separate deal in March, No Signboard had entered a conditional loan agreement with Bryan Lim Soon Fang for a S$1.9 million interest-free unsecured loan, in exchange for GuGong transferring a 22 percent stake in the company.

On Sunday, No Signboard said it entered a deal with a family office-owned venture for an investment of as much as S$5 million in exchange for a 75 percent stake in the company.

Under the memorandum of understanding (MOU), Gazelle Ventures will subscribe for new shares giving it 75 percent of No Signboard’s enlarged share capital for S$500,000, and it will provide an additional investment of S$4.5 million via either debt or equity to be used for working capital purposes, No Signboard said in a filing to SGX Sunday. Emergency funding of S$450,000 will also be provided as rescue financing, the filing said.

Gazelle Ventures is a Singapore-based investor in food, agri-tech and sustainable agriculture-related businesses, the filing said. The investor is jointly owned by Singapore-based family office Gazelle Capital and Hong Kong-based boutique family office Valiant Investments, the filing said.

No Signboard’s shares have been suspended from trade since 24 January after the company said it was unable to show it could continue as a going concern after a share placement deal was terminated.