SINGAPORE - The Stratech Group has "had preliminary discussions with certain parties" keen on investing in the company and will also expedite the injection of fresh funds from its controlling shareholders, as part of efforts to raise more cash to keep the company going.
In a pre-market exchange filing on Monday (Aug 7), the surveillance solutions provider said it was in a negative net equity position as at March 31 and had liabilities such as 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, the company said.
The Stratech Group had earlier proposed to undertake a rights issue of up to 313,436,340 new shares, in which the founders and controlling shareholders, David Chew and Leong Sook Ching, committed to injecting about S$9 million of fresh funds and a further S$2 million to S$3 million of existing loans to the company to address its cashflow and going concern issues.
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In view of the current cashflow requirements, the controlling shareholders have agreed to expedite injection of the fresh funds as loans in advance pending the rights issue exercise, the company said in its exchange filing.
The company also said it plans to resolve any loan defaults and payroll issues, including amounts due for CPF contributions, within the next two weeks.
It has made applications to the Accounting and Corporate Regulatory Authority and the Singapore Exchange for extensions till end-September to hold its AGM as well as issue its annual report.