SINGAPORE - SunMoon Food Company has agreed to pay nTan Corporate Advisory rather than contest its claims for allegedly unpaid fees.
SunMoon said it will pay nTan $2.1 million plus GST in instalments as a full and final settlement relating to services provided by nTan.
In April last year, SunMoon was sued by nTan for 2.06 billion shares or $2.06 million for allegedly unpaid fees, relating to services provided by nTan in "identifying and securing investors" around 2007 when it was in financial distress.
In its statement today, SunMoon said its board believed the settlement represented a positive outcome for the company, taking into account the legal fees that would be payable to its lawyers in continued litigation.
"The settlement will also allow the board and management of the company to have certainty in its financial position, focus their time and energies on the business of the company, and explore future growth opportunities in order to maximise profits and shareholders' returns," said the statement.
SunMoon said it had provided for about half of the settlement sum in previous years, and all payments will be made from its internal resources.
The settlement may have a significant impact on its financial performance for the current financial year.
Following this, nTan will discontinue its suit and has confirmed that it has no further claim against SunMoon for any professional fees.