[Singapore] Innopac Holdings responded late Tuesday night (Feb 20) to queries by the Singapore Exchange (SGX) that the group is continuing to evaluate several restructuring options to improve its financial position amid uncertainty over investment outlays for a gold project and a significant portion of trade receivables that are older than three years.
In response to why Innopac’s S$2.41 million “trade and other receivables and prepayments” was greater than the S$102,000 in revenue recorded for the 12 months ended Dec 31, it disclosed in an ageing schedule S$2.36 million of receivables from subsidiary Dezhou Sheng Rong Gas Co and S$2,000 from Malaysian Microalgae Enterprise. The receivables attributed to Dezhou Sheng Rong have been due for more than three years.
Deposits, and prepayments and advance were S$35,000 and S$16,000 respectively.
As to why it invested only S$6 million of the estimated US$12.5 million required into a facility meant for microalgae cultivation and extraction of oil, Innopac said that it intended to raise the budgeted US$12.5 million from internal sources when it entered into the joint venture agreement in September 2015. At the time, the company had cash and near cash instruments of S$7 million, and had intended to raise the balance from bank loans and borrowings.
“Despite its best efforts, the company was not successful in raising the full budgeted amount of US$12.5 million, resulting in the decision with the joint venture partner to construct a down-sized facility,” Innopac said, adding both parties then decided to sell it on an “as is where is” basis.
With regard to details on the group’s gold exploration and exploitation in the Kyrgyz Republic, Innopac said that it was yet unable to determine the total investment as it was an exploration project.
The company disclosed it has a 50 per cent stake in the project, which has been issued two licences by the Kyrgyz Geology Agency.
“The joint venture company will require further studies to determine the funding requirement,” Innopac said.
On its restructuring, the group also said that it is evaluating “several” options and is seeking professional and legal advice before presenting plans to the board for approval, and will make the necessary announcements in due course.
Innopac’s counter last traded on Feb 13 at 0.3 Singapore cent apiece.
View original article at: Innopac still owed S$2.41m from 2016, evaluating restructuring options
Contact Algae World News for algae industry advertising and other opinions: firstname.lastname@example.org