General Announcement::Announcement and Lifting of Trading Halt

Issuer & Securities

Issuer/ Manager
THE STRATECH GROUP LIMITED
Securities
THE STRATECH GROUP LIMITED - SG1CG9000000 - BRR
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
07-Aug-2017 08:11:44
Status
New
Announcement Sub Title
Announcement and Lifting of Trading Halt
Announcement Reference
SG170807OTHR27JI
Submitted By (Co./ Ind. Name)
Leong Sook Ching
Designation
Executive Director and Secretary
Effective Date and Time of the event
07/08/2017 08:30:00
Description (Please provide a detailed description of the event in the box below)
The Board of Directors of the Company ( the Board ) wishes to announce the following:

(1) It has come to the Company s attention that there have been rumours of its negotiations with parties regarding potential investments in the Company and/or within its group of companies ( the Group ). The Company would like to update that pursuant to the Group s previous announcements of its intent to monetize its intellectual properties by, among others, seeking investments in the Group, it has had preliminary discussions with certain parties. The Company will make the appropriate disclosure should any discussion with parties proceed further.

(2) As announced, the Group was in negative net equity position as at 31 March 2017 and had liabilities including but not limited to short term loans and other payables, which include operational costs such as trade payables, fees, accrued payroll expenses and central provident fund contributions. Some of these payables have since become due. In this regard, the Company had proposed to undertake a renounceable non-underwritten rights issue (the Rights Issue ) of up to 313,436,340 new ordinary shares in the share capital of the Company with 313,436,340 detachable warrants, in which the founders and controlling shareholders, David Chew and Leong Sook Ching (the Controlling Shareholders ) committed to provide irrevocable undertakings to the Company to subscribe for their respective rights entitlement pursuant to the Rights Issue, by injection of about $9 million of fresh funds and conversion of the same and a further $2 million to $3 million of existing loans to the Company (a total of up to $12 million), to address the Group s cashflow and going concern issues. In view of the current cashflow requirements, the Board has discussed with the Controlling Shareholders, who have agreed to expedite injection of the said fresh funds as loans in advance pending the rights issue exercise, so as to meet cashflow requirements of the Group and address the issue of its ability to operate as a going concern. The Company plans to resolve any loan defaults, payroll issues including amounts due for central provident fund contributions, within the next 2 weeks.

(3) Further to the Company s announcement of 21 July 2017, the Company has since made applications to the Accounting and Corporate Regulatory Authority ( ACRA ) and the Singapore Exchange Limited ( SGX ) respectively for extension of time to end of September 2017 to hold its AGM as well as issue its Annual Report. The Company will work with its statutory auditors to enable them to complete their audit of the Group s financial statements for the year ended 31 March 2017 upon the provision of the loans by the Controlling Shareholders as indicated above. The Company will provide updates as appropriate.

Attachments

TSGL - Announcement - UPDATES and Lifting of Trading Halt - 20170807 - f.pdf
Total size =108K