iFast Enters Into MOU To Sell A 5% Stake In iFast China Business

The  Board  of  Directors  (the  “Directors”  or  the  “Board”)  of  iFAST  Corporation  Ltd  (“iFAST”  or  the  “Company” and together with its subsidiaries, the “Group”) wishes to announce that its wholly-owned  subsidiary,   FA   Corporate   &   Compliance   Consultancy   Pte.   Ltd.   (Company   Registration   No.  200722799G), which is intended to be renamed as iFAST China Holdings Pte. Ltd., (“iFAST China  Holdings”), had,  on 28 April  2016,  entered into  a  non-binding memorandum of understanding (the  “Memorandum”)  with  Caerulean  Limited  (BVI  Company  No.  1904290)  (“CL”)  with  its  registered  address at c/o Offshore Incorporations Limited, P.O. Box 957, Offshore Incorporations Centre, Road  Town, Tortola, British Virgin Islands (collectively, the “Parties” and each, a “Party”).

Pursuant  to  the  Memorandum,  (i)  CL  is  desirous  of  subscribing  for,  and  iFAST  China  Holdings  is  desirous  of  issuing  and  allotting,  such  number  of  newly  issued  ordinary  shares  in  iFAST  China  Holdings, representing 5% of the share capital of iFAST China Holdings on an enlarged basis, at a  cash  consideration  of  USD1.75  million  (the  “Proposed  Subscription”);  and  (ii)  the  Proposed  Subscription shall be completed by June 2016 (“Completion”). The consideration for the Proposed  Subscription was arrived at on a willing-seller and willing-buyer basis. Following Completion, CL will  hold a 5% shareholding interest in iFAST China Holdings on an enlarged basis.

CL is an investment-holding company which was incorporated in the British Virgin Islands in January  2016. Its directors are Mr Lim Wee Kiong and Mr Wong Tin Niam Jean Paul. Its shareholders include  Mr Wong Soon Shyan, Mr Lim Wee Kiong and Mr Wong Tin Niam Jean Paul. Mr Wong Soon Shyan,  Mr Lim Wee Kiong and Mr Wong Tin Niam Jean Paul are iFAST employees.

The Group will be undergoing some internal restructuring, such that post-restructuring, iFAST’s China  business  will  comprise  iFAST  China  Holdings  and  its  wholly-owned  subsidiary  in  China  (“iFAST  China Business”). Based on the unaudited financial results for the financial period ended 31 March  2016, the consolidated net asset value of iFAST China Business amounted to approximately S$2.53  million.  Upon  Completion  of  the  Proposed  Subscription,  the  Group  may  see  an  estimated  gain  of  S$2.12  million  based  on  the  financial  position  of  the  iFAST  China  Business  as  at  31  March  2016.  However, the gain is expected to be recognised in the reserves instead of the income statement of  the Group.

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