Asiaphos Limited announced, on Oct 31, that it has received the final instalment of RMB11 million ($2.1 million) representing the balance of the consideration for the sale of Phase 2 Factory Assets and an amount of RMB0.882 million representing interest from Sichuan Mianzhu Huaxinfeng Food.
Asiaphos’ subsidiary, Sichuan Mianzhu Norwest Phosphate Co. had, on Nov 29, 2021, entered into a sale and purchase agreement (SPA) with Sichuan Mianzhu Huaxinfeng Food Co. in relation to the proposed disposal of the assets.
According to Asiaphos, the net book value of the Phase 2 Factory Assets is approximately RMB30.23 million as at Sept 30.
Following the disposal, the group is expected to recognise a gain arising from the disposal of approximately RMB0.259 million after taking into account any expenses or taxes related to the proposed disposal. The parties have agreed to co-share the relevant taxes and fees, with an agreed split of 30% to be borne by Asiaphos and 70% to be borne by Sichuan Mianzhu Huaxinfeng Food.
In its statement, Asiaphos says its management has initiated the process for the repayment of the outstanding bank loan of RMB10 million with SPD Rural Bank and the discharge of the mortgage over the Phase 2 Land Use Rights and will then commence work to transfer the Phase 2 Factory Assets to Sichuan Mianzhu Huaxinfeng Food to complete the transaction.
Shares in Asiaphos closed at 0.3 cents up or 17.65% higher at 2 cents on Nov 1.
