OceanScape International Limited Terminates US\$3.18 Million Solar Panel Inventory Agreement

Detailed Investor Update on Contract Termination, Financial Effects, and Strategic Direction

Key Highlights

• Termination of Major Inventory Purchase: OceanScape International Limited (formerly V2Y Corporation Ltd.) has announced the mutual termination of its previously approved US\$3.18 million solar panel procurement agreement with Changshu Canadian Solar Power Technology Co., Ltd.
• Shareholder Approval Previously Secured: The transaction had received shareholder approval at the 29 December 2025 EGM, marking the Group’s intended major step into the renewable energy sector through inventory purchase for onward sale.
• No Financial Penalties or Payments: No payments were made under the contract, and no penalties are payable as a result of the termination.
• Seller Initiated Termination: The seller cited a reallocation of manufacturing capacity as the reason for terminating the contract, effective 10 March 2026.
• Missed Commercial Opportunity: The company notes that rising solar panel prices since the contract execution could mean higher future procurement costs, a risk that may impact future margins.
• Strategic Refocus: The Group will redirect resources towards alternative procurement and project development opportunities in renewable energy.
• No Material Financial Impact Expected: The termination is not expected to materially affect the Group’s net tangible assets or earnings per share for the financial year ending 31 December 2026.
• Regulatory Context: The company had been in ongoing discussions with SGX RegCo regarding the classification and regulatory treatment of the transaction, but the waiver applications were withdrawn following a change in the company’s Sponsor.
• No Director or Substantial Shareholder Interest: Other than through their shareholdings, none of the directors or substantial shareholders has any direct or indirect interest in the termination.

Detailed Article

OceanScape International Limited has announced the mutual termination of its proposed purchase of solar panel inventory valued at approximately US\$3,184,000 (about S\$4.1 million) from Changshu Canadian Solar Power Technology Co., Ltd. The company’s Board revealed that its wholly owned subsidiary, SeaScape Energy Pte. Ltd., entered into a termination agreement with the seller on 27 March 2026, with the termination taking effect from 10 March 2026.

Background and Strategic Importance

The inventory purchase was a cornerstone in the Group’s renewable energy strategy, aiming to develop a pipeline of projects and supply solar panels to contractors and project owners. This transaction had been classified as a “major transaction” under Catalist Rules, with all necessary disclosures and shareholder approval being obtained at the EGM on 29 December 2025. The company had projected order book quantities exceeding the inventory to be purchased, demonstrating the strategic importance of this deal for its renewable energy ambitions.

Reason for Termination

The termination was initiated by the Seller in February 2026, attributed to the reallocation of its manufacturing capacity. Both parties agreed to terminate the contract, releasing each other from all future obligations and liabilities. Importantly, no payments had been made, and no penalties are payable by either party.

Regulatory and Shareholder Considerations

The company had previously submitted two waiver applications to SGX RegCo seeking clarification on the regulatory classification of the inventory transaction, asserting that this was in the ordinary course of its renewable energy business rather than a business acquisition. However, these applications were withdrawn by the former Sponsor after a change in sponsorship. As such, no final determination was made by the regulator prior to the contract’s termination.

Potential Price Sensitive Implications

• Missed Opportunity and Rising Costs: The Board specifically highlights that the termination represents a missed commercial opportunity. Given the increase in solar panel prices since the original contract, the Group may face higher costs when procuring similar inventory in the future, which could impact profitability and share value.
• Strategic Refocus: The Group intends to shift focus and resources to alternative procurement and project development opportunities, reaffirming its commitment to the renewable energy sector despite this setback.

Financial Impact

The Board has confirmed that the termination of the contract is not expected to have any material adverse effect on the Group’s net tangible assets per share or earnings per share for the financial year ending 31 December 2026, as no financial obligations under the contract had commenced.

Next Steps

The company remains committed to its renewable energy business strategy and will continue to explore alternative procurement and development opportunities. Investors can expect further updates when material developments occur.

Director and Shareholder Interests

None of the directors or substantial shareholders has any interest in the termination agreement other than through their shareholdings in the company.

Disclaimer

This article is prepared for informational purposes only and does not constitute investment advice. Investors are advised to exercise their own judgment and consult professional advisors before making any investment decisions. The information is based on the company’s official announcements and is subject to change without notice. Neither the publisher nor the company assumes any responsibility for actions taken based on this article.

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