LITHIUM-ION battery manufacturer EoCell, an associate of Asti Holdings : 575 -7.14%, has entered into a non-binding letter of intent with an unnamed publicly-traded special-purpose acquisition corporation (SPAC) for a potential combination.

 

If a definitive agreement is reached after negotiations, and the business combination is completed, it is expected that the SPAC will acquire EoCell by reverse triangular merger, or by a similar structure mutually agreed by the parties the shareholders of EoCell will become shareholders of the SPAC, said Asti, a watch-listed semiconductor manufacturing services company, in an exchange filing on Wednesday (Jun 8).

 

&ldquo Shareholders and potential investors should note that there is no assurance that a definitive agreement will be entered into, or that the transaction will be completed if a definitive agreement is entered into,&rdquo the company said.

 

Asti, which has an indirect interest in EoCell, will accordingly have an indirect interest in the SPAC, if the transaction is completed.

 

None of Asti&rsquo s directors, substantial shareholders and/or any of their respective associates, other than EoCell, has any direct or indirect interest, other than through their shareholdings in the company, in the transaction.

 

Asti said it will announce further details regarding the transaction, including the identity of the SPAC, as permitted by the parties. It will also make a further announcement if a definitive agreement is not entered into.

 

Asti said on Monday that it will be delisted from the Singapore bourse for failing to meet the requirements to exit the watch list. It has on the watch list since Jun 6, 2019.

WATCH-LISTED semiconductor manufacturing services company Asti Holdings : 575 +5.88% will be delisted from the Singapore bourse as it has failed to meet requirements for exiting the watch list, the company said in a bourse filing on Monday (Jun 6).

 

Asti has been placed on the watch list since Jun 6, 2019.

 

SGX&rsquo s financial exit criteria indicate that a firm may be removed from the watch list if it records consolidated pre-tax profit for the most recently completed financial year, and posts an average daily market capitalisation of at least S$40 million over the last 6 months.

 

Asti, however, logged pre-tax losses of S$16.4 million for FY2021, based on unaudited financial statements. It recorded S$252,000 in pre-tax losses for the financial year ended Dec 31, 2020.

 

The company&rsquo s average market capitalisation over the 6 months ended Apr 29, 2022 is approximately S$18.2 million.

 

As such, the company&rsquo s securities will continue to be traded until 5.16 pm on Jul 4, and trading will remain suspended from Jul 5, until the completion of its exit offer to shareholders.