This is a good example of 'no smoke without fire'. Just 2 days back there is heavy selling. The price went from $0.11 to $0.08 (again above average volume)
------
BANKING FACILITIES
http://info.sgx.com/webcorannc.nsf/ef3b ... enDocumentEllipsiz Ltd (the “Companyâ€) wishes to make the following disclosures:
1. The Company has an outstanding 3-year term loan (“Term Loanâ€) of S$5.6 million granted by a bank (the “Bankâ€) in Singapore. It is a term of the facility (“Facilityâ€) that the Company shall maintain a consolidated tangible net worth of not less than S$75 million (the “Financial Covenantâ€). The Financial Covenant is assessed annually by the Bank.
2. In the fourth quarter of FY 2008, the Company and its subsidiaries (the†Group’) suffered losses due mainly to a one-time restructuring charge (including loss of tax benefits) of approximately S$9.4 million in connection with the rationalisation exercise carried out by its Probe Cards Solutions business (previously announced on 29 July 2008). As a consequence of the restructuring exercise and the Group’s financial performance as of 30 June 2008, the consolidated tangible net worth of the Company was reduced to approximately S$68.5 million, and the Group does not satisfy the required Financial Covenant.
3. The Company promptly notified the Bank of such non-compliance upon being aware of the same. The Bank has issued a letter dated 15 August 2008 advising inter-alia, that the Bank shall continue to make available the banking facility for the Company’s use. The terms and conditions of the Facility, including the repayment terms, remain unchanged.
4. Nonetheless, pursuant to Financial Reporting Standard 1, as a result of the non-compliance of the Financial Covenant, the Company has classified the outstanding Term Loan as a current liability, even though the Bank has advised that it shall continue to make available the Facility. Save as disclosed, there is no material financial effect on the Company.