No Signboard Holdings has received two letters of demand from solicitors for falling behind on rent at its Centrepoint and Paya Lebar Quarter outlets.
In a filing on the Singapore Exchange (SGX) on Feb 3, No Signboard Holdings says it has received a letter of demand from solicitors acting for Frasers Property Centrepoint, the landlord of 176 Orchard Road #B1-07 The Centrepoint, occupied by the company’s wholly-owned subsidiary, Hawker QSR, for payment of the sum of $12,161.10 in rental and other monies.
The second letter of demand comes from solicitors acting for Milano Central, the landlord of 10 Paya Lebar Road, Provisional Unit No. #01-37 and part of #01-38 Outdoor Refreshment Paya Lebar Quarter, occupied by Hawker QSR, for payment of the sum of $163,965.56 in rental and other monies.
The company has retained Messrs Rajah & Tann Singapore LLP as counsel to advise the group on these claims.
"The board is of the view that these claims will have a material adverse impact on the financial position and performance of the group. The company will make further announcements to update shareholders on material developments, as and when necessary," reads the filing.
No Signboard Holdings requested on Jan 24 to convert its Jan 19 trading halt to a voluntary trading suspension.
See also: No Signboard Holdings requests for voluntary trading suspension
The company’s board of directors, in an SGX filing, stated that the company was unable to continue according to the Catalist rules of the SGX-ST.
This is due to the “continued challenges in the operating environment of the local food and beverage (F&B) industry”, which includes the dining restrictions caused by the pandemic.
As at Jan 24, No Signboard Holdings has about $3.7 million cash in the bank, with $2.9 million earmarked by DBS Bank for the facilities drawn down, which includes an SME working capital loan and a temporary bridging loan.
On Jan 11, the company announced that its placement deal with Henry Chandra Tjiang, an Indonesian private investor, had fallen through. Chang was to have invested $3.5 million in the company for 77.8 million new shares at 4.5 cents apiece.
Prior to the halt on Jan 19, shares in No Signboard Holdings had traded at 3.1 cents.
