SINGAPORE - YuuZoo Networks Group Corp said that it has secured commitment for a three-year, $30 million funding facility from "Swiss-based" Asia Financial Group (AFG).

According to the Tuesday (March 19) filing to the Singapore Exchange, YuuZoo said may draw down up to $30 million over three years by issuing YuuZoo shares to AFG at a 7.5 per cent discount to the closing price of YuuZoo stock on the drawdown date.

The troubled social commerce company did not provide details about AFG, and gave only a brief summary of the terms of the deal in its filing. It is also unclear how, when and if YuuZoo will be able to tap this commitment, given that its stock has been under an exchange-imposed suspension since 2018 and there is still no visibility on when the suspension may be lifted.

The agreement will also see YuuZoo issuing 65 million warrants to AFG, each carrying the right to subscribe to one new ordinary share in the company at a 10 per cent premium to the three-day average market price of YuuZoo stock. Should AFG fully exercise the options, YuuZoo will receive an additional $2.72 million in funds, the statement said.

The deal is subject to approval by the Singapore Exchange (SGX) and shareholders.

Attempts by BT to contact the company on Tuesday were unsuccessful. The contact person provided by YuuZoo was former Singapore CEO Mohandas, who the company is now describing as a non-executive director. Mr Mohandas, who goes by one name, has told BT that he no longer works for the company, has not accepted any new positions at YuuZoo, and does not represent them. The announcement on the AFG deal was submitted to the Exchange by YuuZoo non-executive chairman Anthony Williams.

YuuZoo's announcement came a day after the company revealed that it had shut down all of its operations in Singapore, including laying off all staff in the country. The Business Times had also discovered that YuuZoo's landlord at its now-vacated offices in Teletech Park issued a notice to YuuZoo on unpaid rents.

YuuZoo had also said on Monday that its shares were first suspended in March last year after then auditor RT LLP failed to reply to queries from the SGX.

But RT LLP noted on Monday that a disclaimer had been issued to YuuZoo, in response to the questions posed by SGX, because the auditor had been "unable to form an opinion due to limitation of scope".

The Commercial Affairs Department, which investigates white-collar crimes in Singapore, has been investigating YuuZoo based on a 2018 referral by SGX, which raised questions about the company's accounts. SGX has said that it will lift the suspension when it is satisfied that the company's shares can be traded on a fair, orderly and transparent basis.

In responding to YuuZoo's assertions on Monday that the trading suspension led to shuttering of its Singapore operations, SGX said on Monday: "The state of affairs at the company is unclear and the company's shares therefore remain suspended."