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 V2Y . 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&rsquo s search for new businesses to provide additional revenue and income streams under its business diversification mandate. 

 

Abila was selected to &ldquo complement and strengthen the quality&rdquo of the group&rsquo s food and beverage (F& B) portfolio and operations, which will allow the group to achieve sustainable financial growth, says V2Y Corporation. 

 

On a pro forma basis, had the acquisition been completed on Dec 31, 2023, the group&rsquo 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&rsquo 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. 

V2Y Corporation, which is in the business of providing third party administration and value-added services to help companies in the computer, communication and consumer electronics sector manage and execute their extended warranty and accidental damage protection programmes, has entered into an exclusive distribution agreement with Shouguang Leyi Vegetable Technology Development Co., Ltd to supply Chinese cabbage and other products produced by the latter to countries in Southeast Asia.

 

The agreement was entered into by V2Y&rsquo s newly-incorporated subsidiary, Evertrust Distribution (EDPL). EDPL was incorporated on Nov 22. Its principal activity is the wholesale of fruits and vegetables, says V2Y in its Nov 22 statement.

 

A joint venture agreement (JVA) was entered between V2Y and EDPL to regulate the relationship of the shareholders of EDPL, which is V2Y&rsquo s wholly-owned subsidiary, V2Y Pte Ltd (V2YPL) and Green Grapes Pte Ltd (GGPL). Under the JVA, V2YPL will subscribe for 51,000 shares (or a 51% stake in the JV) at $1 apiece while GGPL will subscribe for 49,000 shares (or a 49% stake) at $1 each. GGPL was identified as a JV partner due to its business connections in the industry, including Shouguang Leyi, says V2Y Corp.

 

Under the distribution agreement, EDPL will be the distributor of Shouguang Leyi&rsquo s products for three years starting from Dec 1. The agreement will automatically be renewed on the same terms and conditions once the initial three years are up.

 

EDPL will have to purchase a projected target of $10 million from Shouguang Leyi from Dec 1, 2024, to Dec 31, 2025. The projected target for subsequent years will be subject to further review. A failure to meet the sales target will not constitute a breach of the distribution agreement. There will be no penalties or compensation should the target not be met for each year during the term of the agreement.

 

In its Nov 30 statement, V2Y Corp says it intends to sell the products by identifying and engaging potential partners who are interested in carrying and reselling them. It adds that it has already obtained the required certifications and licences in China for the sale and export. The group will also work with third parties to obtain the necessary certifications to distribute the products in Singapore.

 

V2Y Corp, which was previously known as Synagie Corporation, obtained the mandate to diversify its business from its shareholders on Oct 8.

 

Prior to that, the company acquired a hot-pot chain on Aug 28 for $250,000, saying that it was exploring opportunities in the food and beverage (F& B) industry to diversify its business and reduce its reliance on its existing core business. The seller, Culinary Creation, operates a restaurant and two food outlets located at the Jalan Besar Sports Centre, 201 Kim Tian Road and 134 Tagore Lane.

 

On Oct 10, the company entered into a sale and purchase agreement (SPA) to acquire Urban Exchange for $580,000. V2Y Corp also paid a rental security deposit to use Urban Exchange&rsquo s coffeeshop at Block 603 Clementi West Street 1, #01-43.

 

During the 3QFY2024 ended Sept 30, V2Y Corp reported a loss of $384,000, 73% deeper than the $222,000 loss it incurred in the 3QFY2023. For the 9MFY2024, the company reported a loss of $823,000, 12.4% more than the $732,000 loss in the 9MFY2023.

The counter was up S$0.005 to S$0.02 with 3.2 million shares having changed hands when the market opened, after a trading halt was lifted

SHARES of V2Y Corporation : V2Y +6.67% rose as much as 33.3 per cent on Thursday (Jul 11) morning, after it proposed to raise S$2 million by issuing a total of 135.1 million new ordinary shares at S$0.0148 apiece.

 

The counter was up S$0.005 to S$0.02 with 3.2 million shares having changed hands when the market opened, after a trading halt was lifted.

 

By 9.51 am, V2Y was one of the most actively traded counters by volume. Its shares were trading up 6.7 per cent or S$0.001 at S$0.016. No married deals were recorded in early trade, ShareInvestor data showed.

 

The counter ended S$0.001 or 6.7 per cent higher at S$0.016 on Thursday.

 

On Wednesday, V2Y said it entered into three subscription agreements with Felix Ang, a business owner in the food and beverage and wholesale sector Muhammad Asyraf, a property investor and Teng Jun Jie, owner of an interior design company.

 

As part of the agreement, the trio will subscribe for the placement shares through two tranches.

 

Under the first tranche, Ang will subscribe for 20.3 million of the new shares for S$300,000, while Asyraf and Teng will purchase 6.8 million shares each for S$100,000.

 

In the second tranche, Ang will purchase 40.5 million shares for S$600,000, while the other two will purchase 30.4 million shares each for S$450,000.

 

Following the completion of both tranches, V2Y&rsquo s share base will increase to 489,021,044 shares from 353,885,908 currently.

 

Ang, Asyraf and Teng will each hold about 12.44 per cent, 7.6 per cent and 7.6 per cent, respectively, of V2Y&rsquo s enlarged capital post the new share placement. The trio will also become substantial shareholders of the company.

 

The issue price represents an approximate 9.98 per cent discount to its volume weighted average price of S$0.0164 per share for trades done on the Singapore Exchange from Jul 4 to 12 pm on Jul 8, the last full trading day before the offer announcement.

 

The Catalist-listed company called for a trading halt during the midday break on Jul 8, after experiencing a significant surge in trading volumes in the morning.

 

V2Y said it believes the proposed placement will increase capital resources available to the company, with net cash proceeds of about S$1.9 million.

 

It intends to use 54 per cent of this for expansion via mergers and acquisitions, joint ventures, partnerships and investments, while the remaining 46 per cent will be used for general working capital.

 

Assuming the subscription had taken place on Dec 31, 2023, the company&rsquo s FY2023 net tangible per share would have been S$0.0035 as opposed to a loss of S$0.0004.

 

Loss per share for the fiscal year would have been S$0.0019 rather than S$0.0026, had the transaction been completed on Jan 1, 2023.

 

The company was known as Synagie before it was renamed in 2020, following the disposal of its e-commerce business.

 

Its core insurtech business segment is mainly focused on the general insurance market and device protection in Singapore, covering smart watches, mobile phones, tablets and laptops.