The group’s board says that the proceeding against Gazelle will not have any material impact on its business
BROMAT Holdings said on Aug 2 (Friday) that a creditor of its controlling shareholder, Gazelle Ventures, has commenced a winding-up proceeding against the shareholder amid a legal dispute.
The food and beverage (F&B) player, formerly called No Signboard, issued S$4.5 million worth of convertible redeemable preference shares to Gazelle on Mar 28. The instrument is convertible into 145 million shares in Bromat.
There are no provisions for the early repayment or termination of the convertible redeemable preference shares by either party, and the repayment can be made through the conversion at Bromat’s option.
In a regulatory filing, Bromat’s board said that, barring unforeseeable circumstances, the proceeding against Gazelle will not have any material impact on the group and its business, and that it can continue operating as normal.
The company had been embroiled in legal proceedings before the former controlling shareholder called it quits and the “No Signboard” trademarks were sold under a settlement agreement.
Bromat last traded flat at S$0.12 on Jul 24. Trading of its shares was halted on Jul 31, but a request has since been made on Aug 2 for the halt to be lifted.
