Catalist-listed Metech International V3M has entered into a $3 million interest-free loan agreement with Cao Shixuan, general manager of a subsidiary of the group. This marks the second loan agreement between Metech and Cao.
The group had entered into an $1.0 million interest-free loan agreement with Cao on March 25.
According to an Oct 7 release, the group says the second loan is set to be used by Metech for business diversification related purposes and general corporate and working capital purposes.
The loan is expected to mature 12 months from the date of the second loan agreement.
In the event the group is unable to repay the second loan, Metech and Cao are expected to enter discussions and negotiations focused on extending the repayment date or the conversion of outstanding amounts into group shares.
Shares in Metech International closed 0.1 cents higher, or up 2.17%, at 4.7 cents on Oct 7.
