SINGAPORE - Financially beleaguered firm Lifebrandz has announced that its proposed placement of 167 million new ordinary shares has been terminated by mutual agreement of the parties involved.

The former nightlife entertainment firm had on Nov 15 conditionally agreed to the placement to Australian-incorporated Pramana Capital Pty Ltd.

Lifebrandz was to issue 167 million new shares for S$501,000, or 0.3 Singapore cent per share, representing a premium of 20 per cent to the Catalist-listed stock's average price of 0.25 cents on Nov 15.

In filing to the Singapore Exchange on Tuesday morning (Feb 21), Lifebrandz said the placement agreement will no longer have any effect and the parties shall have no further obligations or claims against each other.

It said the termination of the agreement is not expected to have any material effect on the company's performance for the financial year ending July 31, 2017.