On July 2, No Signboard Holdings changed its name to Bromat Holdings. The company has had its fair share of challenges. On Aug 2, it announced that Gazelle Ventures, its controlling shareholder, is in the midst of a legal dispute with a creditor and that the creditor has commenced a winding-up proceeding against Gazelle.
To complicate relationships, Bromat’s current CEO Lim Teck-Ean is a shareholder of Gazelle. According to Bromat’s circular dated Nov 8, 2022, Bromat issued $4.5 million convertible redeemable preference shares (CRPS) to Gazelle on March 28, 2024. The CRPS are convertible into 145 million shares in Bromat. There are no provisions for the early repayment or termination of the CRPS by either party and the repayment can be made through the conversion of the CPRS, at the option of the company, the Aug 2 announcement says.
Bromat was listed in 2017 and has since been focused on its balance sheet and funding needs. After many twists and turns, including shareholder tussles, the company no longer owns the No Signboard brand. According to its website, its F&B offerings are now under Shang Society, Little Sheep Hotpot and Dining Haus.
However, according to replies posted on SGXnet, Bromat can only operate one Little Sheep outlet at Orchard Gateway and it will not be focusing on Little Sheep Hotpot as the landscape is very competitive. Instead, Bromat will work on expanding its fast-casual dim sum outlet under its Shen Jian brand, and Dining Haus.
Unfortunately, Bromat is better known for its legal and financial issues than for food. For instance, the company’s latest financial results for nine months to June 30 show negative operating cash flow, negative equity versus $4 million of debt, and the inability to cover interest costs. Bromat announced a loss of $24,255 for the nine months to June 30.
These conditions are likely to be unappetising for investors and diners alike.
See also: Delisted food companies cited low liquidity and compliance costs
