Mercurius Capital Investment Limited Issues Monthly and Quarterly Updates: Key Developments for Investors

Mercurius Capital Investment Limited has released its latest monthly and quarterly updates, providing important insights into the company’s financial position, ongoing negotiations, and key milestones as it seeks to secure a new business direction. Below, we detail the most material developments and highlight issues that may have a significant impact on shareholders and the company’s share value.

1. Ongoing Negotiations and Creditor Updates

• Outstanding Claims: The company has not received any further communications from the solicitors of Songmart’s liquidator regarding a prior demand for stamp duty payment or in relation to Songmart’s liquidation. Investors should note that this matter remains unresolved, and any future developments could have financial implications.
• Convertible Loans and Borrowings: Three convertible loans, all due in June 2025, and a US\$460,000 loan from Asia Assets Development Co. Ltd. (due July 2025), have not yet been repaid. The Board reports a verbal understanding with the respective lenders to extend the maturity dates until the completion of the proposed Reverse Takeover (RTO). While no formal agreements have been signed, resolution of these obligations is critical for the company’s financial stability.

2. Status of Grand Bay Hotel Co., Ltd. (GBH)

• The previously planned liquidation of GBH has been put on hold. The company is now exploring a potential capital reduction exercise as an alternative exit strategy. Legal evaluations are ongoing, and the final structure of the arrangement has not yet been determined. The outcome could impact the company’s asset base and future cash flows.

3. Audit Status and Delay in Annual General Meetings

• The audit for FY2023 remains incomplete due to outstanding audit fees owed to the auditors. Consequently, the annual general meetings (AGMs) for both FY2023 and FY2024 have not been convened, as the FY2024 audit cannot proceed without the completion of FY2023.
• The company is working to resolve these issues and convene AGMs as soon as possible. Delayed or missing AGMs and audited accounts may raise governance and compliance concerns among investors.

4. Financial Position and Asset Valuation (as at 30 November 2025)

• Assets: S\$149,000 (Cash & bank: S\$1,000; Trade & other receivables: S\$148,000)
• Liabilities: S\$9,107,000 (Trade & other payables: S\$2,905,000; Borrowings: S\$6,202,000)
• Net Liabilities: S\$8,958,000 (excluding investment in joint venture)
• Investment in Joint Venture: S\$5,945,000. If included, assets rise to S\$6,094,000, and net liabilities fall to S\$3,013,000.
• Cash Utilisation: Minimal movement, with S\$1,000 in the bank as at 30 November 2025 and negligible bank charges in November.
• Director Advances: Liabilities include monies advanced by Directors to support working capital.
• Note: The figures are unaudited and may be subject to further adjustments since the company’s finance team only provides quarterly bookkeeping.

5. Future Direction and Regulatory Requirements

• Use of Proceeds: The SGX-ST has allowed the company to utilise THB 25 million (approx. S\$1 million) from the proposed liquidation for working capital, subject to conditions.
• Critical Deadline: The company must sign a definitive agreement for its RTO plan by 31 December 2025. Failure to do so will require Mercurius to voluntarily seek a delisting from the Singapore Exchange.
• Business Milestone: The Board is working to finalise a blue carbon credits collaboration, which could potentially transform the company’s business direction. Any successful deal or signed agreement would be highly material for shareholders.

6. Key Takeaways for Investors

• Critical financial and operational uncertainties remain, including:
  • Unresolved creditor issues and outstanding loans
  • Delays in audit completion and AGMs
  • Very low cash balances and significant net liabilities
  • Potential delisting if RTO agreement is not signed by year-end
• Price-Sensitive Triggers: Any formal resolution of loans, successful RTO agreement, conclusion of GBH exit, or the blue carbon credits business deal could move share prices significantly.
• Downside Risk: Failure to meet SGX-ST requirements or to secure new business could lead to delisting and further erosion of shareholder value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to exercise caution and consult their financial advisers before making any investment decisions. Mercurius Capital Investment Limited’s situation remains fluid and subject to rapid change.

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