GRC Limited Updates Investors on Settlement with Jadewin Smooth Limited (In Liquidation)

Key Points:

• Settlement Reached: GRC Limited has reached a settlement with the liquidators of Jadewin Smooth Limited, which was under compulsory liquidation.
• Court Application Discontinued: As a result of the settlement, the liquidators of Jadewin have discontinued their court application against GRC Limited and its wholly-owned subsidiary, OKH Holdings Pte Ltd. This application had previously sought the disclosure of documents related to the Jadewin Indebtedness and its discharge, as well as all related communications.
• No Order as to Costs: The court discontinuance was filed with no order as to costs, meaning neither party was ordered to pay the other’s legal costs. Importantly, no relief was granted to the liquidators of Jadewin.
• Financial Impact: The company has stated that this settlement is not expected to have a material impact on the net tangible assets per share or earnings per share for the financial year ending 30 June 2026.
• Board Announcement: The announcement was made by Kong Wei Fung, Company Secretary, on 10 December 2025.

Analysis for Shareholders and Investors

This update is significant for several reasons:

• Legal Uncertainty Resolved: The discontinuation of the court application removes a layer of legal uncertainty that had been hanging over GRC Limited and its subsidiary. This could be seen as a positive development for investors, as ongoing litigation often weighs on share prices due to the risk of adverse outcomes or associated legal costs.
• No Material Financial Impact: The company has explicitly stated that the settlement will not have a material impact on the financials for the current year. While this means there is no immediate change to earnings projections, the removal of legal overhang could improve investor sentiment and potentially have a stabilizing or positive effect on the share price.
• Clarity on Jadewin Indebtedness: The core issue in the legal dispute involved the disclosure of documents and communications regarding the Jadewin Indebtedness. With the case discontinued and settled, investors now have closure on this matter, reducing speculation about potential liabilities or hidden risks related to this indebtedness.

What Should Shareholders Watch For?

• Potential Share Price Movement: While the company states that there is no material financial impact, the resolution of legal disputes often reduces risk premiums and could lead to a positive reaction in the share price, especially if investors had previously factored in potential legal liabilities.
• Ongoing Monitoring: Shareholders should continue to monitor any further disclosures from the company regarding legacy issues or any new developments that may arise from the settlement, as well as the company’s overall financial performance for the year ending 30 June 2026.

Conclusion

GRC Limited’s settlement with the liquidators of Jadewin Smooth Limited closes a chapter of legal risk for the company. While the board does not expect a material impact on the current year’s financials, the resolution of the dispute may be viewed positively by the market due to increased certainty and the removal of a potential overhang on the stock.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions.

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