The company, led by executive director and CEO Dr Djeng Shih Kien, was listed on Feb 16 at 23 cents and closed at 10 cents on March 15.
To repay these creditors, the company will be issuing 33.3 million shares to creditor ISQuare, which loaned $3 million.
In addition, it is issuing 1.11 million shares each to the following lenders who loaned the company $100,000 each. They are Lee Ting Ni, Dr Yeo Khee Quan, Anthony Lim Gek Seng and Low Ming Wah.
By repaying these creditors via new shares instead of cash, the company can conserve cash, improve its cash flow and increase working capital to fund general overheads, financing requirements and other operating expenses.
See also: Salt Investments looking for alternative funding after two investors missed placement deadline
The new shares will increase the company's share base by 3.75% to around 1.045 million shares.
