YuuZoo says it has secured 3-year, S$30m equity funding

Singapore

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

According to the Tuesday announcement, YuuZoo may draw down the sum 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 issue 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 S$2.72 million in funds, the statement said.

Attempts by The Business Times to contact the company on Tuesday were unsuccessful. The contact person provided by YuuZoo was former Singapore CEO Mohandas, whom the company has designated as a non-executive director.

But 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 Singapore Exchange (SGX) 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.

BT reported on Monday that YuuZoo's landlord at its now-vacated offices in Teletech Park had issued a notice to YuuZoo over unpaid rents.

The Commercial Affairs Department, which investigates white-collar crimes in Singapore, has been investigating the company based on a 2018 referral by SGX, which raised questions about YuuZoo'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.

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