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RESTAURANT operator No Signboard said on Thursday (Feb 8) that its investor Gazelle Ventures has agreed to provide additional funds into an escrow account to ensure sufficient working capital for the company.
This comes as part of a wider growth plan and for No Signboard’s counter to resume trading.
These funds would be earmarked for the company’s general working capital and funding requirements, and other purposes determined by the board and authorised by Gazelle.
The struggling restaurant operator provided this update on its proposed plans to resume trading in a bourse filing on Thursday.
Besides additional capital injection, No Signboard said it is also still in the process of completing the acquisition of a 60 per cent stake in Dining Haus, a company that provides institutional catering services to clients at industrial sites in Singapore.
No Signboard, along with its investor, had entered into a sale-and-purchase agreement with Dining Haus chief executive officer Chia Shu Sian on Jan 10, 2024.
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It had also entered into an agreement with its lender, OCBC, for the company to start repaying its outstanding loan only after its shares resume trading. The loan consists of a principal amount of S$2.125 million, in addition to interest incurred.
No Signboard said the completion of the S$5 million investment from Gazelle, the resumption of trading, and additional capital via an escrow account will ensure that the company will continue to operate as a going concern.
Trading in the shares of the Catalist-listed company has been suspended since Jan 24, 2022.
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