No Signboard Holdings has, on the evening of March 14, announced that it will be placing its indirectly wholly-owned subsidiary, Danish Breweries, into creditors’ voluntary liquidation (CVL).
According to its statement, the Catalist-listed restaurant operator revealed that its subsidiary cannot continue its business due to its liabilities.
In addition, the group says it had decided to proceed with the CVL “due to its cash flow problems and its inability to pay its debts as they fall due”.
According to the group, the CVL will contribute positively to the group’s net tangible assets (NTA) and earnings per share (EPS) for the current financial year ending Sept 30, as the subsidiary is loss-making, says the group.
If the CVL commenced on Sept 30, 2021, the proforma effect on the NTA per share would have been at 0.14 cents instead of 0.08 cents. Similar, the loss per share would’ve eased to 1.28 cents on a proforma basis, from the 1.37 loss per share reported.
Danish Breweries was acquired by No Signboard Holdings in June 2017 and it was mainly in the business of the import, export and general wholesale trading of beer and liquor.
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Shares in No Signboard last traded at 3.1 cents before its trading suspension on Jan 24.
Photo: The Edge Singapore
