Boustead Singapore says it is not going ahead with the acquisition of redeemable convertible notes and shares of Bio-Treat Technology.

Earlier, subsidiary Boustead Knowledge, had agreed to purchase 100 million Bio-Treat shares from Giant Delight Holdings Limited (GDL) at the price of 4 cents each.

Boustead says it decided to scale down its investment after Bio-Treat announced a rights issue of up to 992,236,440 new shares at 4 cents each to raise funds.

“Assuming that the Rights Issue is sufficiently taken up by Bio-Treat’s existing shareholders, the Company understands that Bio-Treat’s requirement for investment would be reduced and less capital would be required,” says Boustead in an SGX statement.

In addition, Boustead says the proposed issue of the notes by Bio-Treat to GDL has been delayed due to regulatory concerns.