AGV: Receipt of request letters

AGV GROUP LIMITED

(Company registration number 201536566H)

(Incorporated in the Republic of Singapore on October 2, 2015)

RECEIPT OF REQUEST LETTERS

1. INTRODUCTION

1.1. The Board of Directors of AGV Group Limited (the “Company” and together with its subsidiaries, the “Group” refers to:

  1. the ad ref. no. SG211123OTHR1GX1 made by the Company on November 23, 2021 regarding the existence of a significant uncertainty likely to cast significant doubt on the Group’s ability to continue operating (the “Material Uncertainty Announcement”); and
  2. the announcement made by the Company on November 28, 2021 regarding the Company’s response to questions from the Singapore Exchange Securities Trading Limited (the “SGX-ST”) dated November 25, 2021 regarding the Company’s November 23 Announcements (the “November 28 Announcement”),

(collectively, “Relevant Past Announcements”). Unless defined otherwise herein, capitalized terms used in this announcement will have the meanings given to them in the November 28 announcement.

1.2. The Board of Directors announces that the Company received on December 1, 2021 letters of formal notice from:

  1. lawyers acting on behalf of Mr. Alvin Poh Hsien Yang (“Mr. Poh”) in connection with novation acts concluded between the Company, Mr. Poh and Mr. Chua Wei Kee and the company or companies he controls respectively , in connection with the Debt (collectively, the “Deeds”) and the payment agreement relating to the Deeds (the “Payment Agreement”), collectively entered into on October 7, 2021 (the “First Letter of Request”); and
  2. attorneys acting on behalf of Mr. Lim Kim Cheei (“Mr. Lim”) in connection with an agreement between AGV Galvanizing (M) Sdn Bhd, a subsidiary of the Company (“AGVM”), and Mr. Lim for the payment of consulting fees to Mr. Lim in connection with the sale and leaseback undertaken by AGVM (the “Fee Agreement”), as announced on November 19, 2020 (the “Second Letter of Request”).

2. REQUEST LETTERS

2.1. The highlights of the first letter of request are set out below:

  1. Pursuant to the Payment Agreement, it was agreed that the debt would be paid by the Company to Mr. Poh in 12 equal installments beginning November 14, 2021 through October 14, 2022. The first installment was to be made on November 14. 2021.
  2. It was alleged that in breach of, among other things, the payment agreement, the company failed, refused and / or neglected to pay the first installment to Mr Poh.

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  1. It has been requested that:
    1. the Company pays the first installment to Mr. Poh immediately and without further delay; and
    2. the Company confirms in writing that the Company has remained fully able and willing to comply with its obligations under the Deeds and the Payment Agreement. In particular, that the Company will make the payment of the Debt in accordance with the terms of the Payment Agreement,

failing which, Mr. Poh may take other measures as necessary to assert his rights without further notice or reference to the Company.

  1. The highlights of the second letter of request are set out below:
    1. As per the Fee Agreement and subsequent correspondence, it is stated that the AGVM is to make the payment of RM 180,000 in eight (8) monthly installments effective November 15, 2021.
    2. The first two (2) monthly installments for November and December amounting to RM45,000 will be due and payable immediately.
    3. In the event of non-payment of any one of the deadlines, the entire amount remaining due will become due and payable immediately.
  2. The Company is currently seeking legal advice on its position. vis-à-vis request letters, including payment agreement and fee agreement, and will make announcements as there are other important developments.
  3. Trading in the Company’s securities on the SGX-ST had been voluntarily suspended by the Company on November 24, 2021.

BY ORDER OF THE COUNCIL

Chong Kwang Shih

Independent lead director

AGV Group Limited

December 2, 2021

This announcement has been prepared by the company and its content has been reviewed by the company sponsor, Hong Leong Finance Limited. It has not been reviewed or approved by the Bourse and the Bourse assumes no responsibility for the content of this announcement, including the accuracy of any statements or opinions made, or reports contained in this announcement.

The contact person for the sponsor is Mr. Kaeson Chui, Vice President, at 16 Raffles Quay, # 01-05 Hong Leong Building, Singapore 048581, phone (65) 6415 9886.

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Disclaimer

AGV Group Ltd. published this content on 02 December 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 02 December 2021 01:20:01 UTC.

Public now 2021

All news on AGV GROUP LIMITED
Sales 2020 10.3 million
7.52 million
7.52 million
2020 net income -2.28M
-1.67M
-1.67M
Net debt 2020 16.5 million
12.1 million
12.1 million
PER 2020 ratio -2.87x
2020 yield
Capitalization 9.98 million
7.32 million
7.31 million
VE / Sales 2019 3.94x
VE / Sales 2020 3.04x
Number of employees 110
Free float 52.6%

Duration :

Period:

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