YKGI Limited’s subsidiary, YKGI Ventures, has entered a joint venture agreement (JVA) with Oriental Coffee International, while incorporating it into the group for an initial paid-up capital of $1 million comprising 10,000 ordinary shares.
According to a release dated Aug 15, the group’s entry into the joint venture is in line with its business strategy to expand outreach through strategic acquisitions and joint venture partnerships.
Oriental Kopi will provide additional future revenue streams for YKGI, while enabling them to leverage on the business networks and know-how, and to acquire and develop the group’s expertise in operating traditional coffee houses in Singapore.
The initial paid-up capital of the company will be $1 million, whereby 90% and 10% is contributed by YKGI and Oriental Kopi respectively.
In the event any additional capital contribution to the JV Company is required, 80% and 20% of such capital contributions shall be contributed by YKGI Ventures and Oriental Kopi, respectively.
The joint venture will commence on the date of the agreement, and continue for a period of five years with an option for renewal for a further five years, subject to mutual agreement.
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Shares in YKGI closed 0.4 cents lower, or 3.39% down, at 11 cents on Aug 15.
