SINGAPORE (THE BUSINESS TIMES) - Seafood restaurant operator No Signboard Holdings has entered into a non-binding memorandum of understanding to receive up to $5 million in investments from renewable biomass project developer and operator Gazelle Ventures.

Under the proposed investment, Gazelle Ventures will also hold a 75 per cent stake in the enlarged share capital of No Signboard through a $500,000 subscription of new shares.

The remaining $4,500,000 will be invested by way of a debt or equity instrument. This will be for working capital purposes, including but not be limited to the settlement of professional, advisory and success fees on such terms and conditions as may be agreed between the companies, No Signboard said in a bourse filing on Sunday (May 1).

Gazelle Ventures will also provide $450,000 of "rescue financing" that is "subject to the satisfaction of the necessary conditions as agreed between the investor and the company", the restaurant chain said.

Gazelle Ventures is a Singapore-incorporated company jointly owned by Gazelle Capital and Valiant Investments. It invests in food, agri-tech and sustainable agriculture-related businesses.

In March, No Signboard announced that it would be shutting its Esplanade outlet to reduce costs as the outlet was making losses.

"The closure of the No Signboard Seafood Esplanade outlet will allow the group to focus its efforts and resources on operating the group's casual and quick-serve restaurant outlets until further review of the evolving Covid-19 situation," the company had said.

Shares of No Signboard Holdings have been suspended from trading since Jan 24, 2022.