SINGAPORE (THE BUSINESS TIMES) - Seafood restaurant operator No Signboard Holdings has terminated its conditional loan agreements with Q&M Dental chief executive Ng Chin Siau and private investor Bryan Lim Soon Fang.

No Signboard’s controlling shareholder, GuGong, and Mr Ng also mutually terminated their conditional sale and purchase agreement over a 29 per cent stake in the company’s shares, the Catalist-listed company said on Tuesday (May 3).

The termination comes days after No Signboard said it has entered into a non-binding memorandum of understanding (MOU) to receive up to $5 million in investments from renewable biomass project developer and operator Gazelle Ventures.

No Signboard said the proposed investment structure in its agreement with Mr Ng could not be completed within the timeline, while the conditions precedents set out in its agreement with Lim could not be completed within a reasonable time period.

Mr Ng had in March agreed to take a 29 per cent stake in the restaurant operator for a total consideration of $1 from controlling shareholder GuGong. He also agreed to extend an interest-free unsecured loan of $2.6 million to the company.

In the same month, Mr Lim also made an agreement with GuGong to take a 22 per cent stake in No Signboard for $1, and extend an interest-free unsecured loan of $1.9 million.

Then, No Signboard said the two loans will allow the company to obtain $4.5 million in interest-free and unsecured financing, which is expected to assist in meeting the group’s working capital requirements.

As for No Signboard’s MOU with Gazelle Ventures, No Signboard said on Sunday that Gazelle will take a 75 per cent stake in the enlarged share capital of the company through a $500,000 subscription of new shares, with the remaining $4.5 million to be invested by way of a debt or equity instrument.

Gazelle will also provide $450,000 of “rescue financing” under the MOU.

No Signboard’s chief executive Lim Yong Sim, and chief operating officer Lim Lay Hoon are the shareholders and directors of GuGong.

No Signboard in January requested to suspend the trading of its shares as it was unable to demonstrate that it was able to continue as a going concern. Shares of the company last closed flat at three cents on Jan 18.

Correction note: This article has been amended to correctly reflect the terminated conditional loan agreements and conditional sale and purchase agreement.