V2Y Corporation has entered into a sale and purchase agreement with Lim Weng Chuan for the acquisition of a 60% stake in Abila Pte. Ltd., according to a Dec 17 release.
Under the agreement, the group is also set to be granted an option to purchase the remaining 40% stake, or 120,000 ordinary shares, of Abila.
Abila, which was incorporated in 2014, focuses on the operation of cafes, food courts, coffee shops and canteens. Abila currently leases and operates two coffeeshops, each comprising a food stall and a drink stall, and also leases another coffee shop premise, which is licensed to a third party for the day-to-day operations.
According to the group, the total consideration, which stands at $540,000, is expected to be satisfied in full by way of an allotment and issuance of an aggregate of 36 million new ordinary shares in V2Y Corporation . The shares will be issued at 1.5 cents per consideration share.
The group adds that the proposed acquisition will form part of V2Y Corporation’s search for new businesses to provide additional revenue and income streams under its business diversification mandate.
Abila was selected to “complement and strengthen the quality” of the group’s food and beverage (F&B) portfolio and operations, which will allow the group to achieve sustainable financial growth, says V2Y Corporation.
See also: Nippon Steel, US Steel file lawsuits after Biden blocks deal
On a pro forma basis, had the acquisition been completed on Dec 31, 2023, the group’s FY2023 net tangible assets (NTA) would have stood at $908,000 instead of $201,000. NTA per share would have stood at 22 cents, instead of 6 cents.
Had the acquisition been completed on Jan 1, 2023, the group’s FY2023 earnings would have stood at a loss of $837,000, instead of a loss of $921,000. Loss per share would have stood at 20 cents, instead of a loss of 26 cents.
Shares in V2Y Corporation closed flat at 1.6 cents on Dec 17.
