Tung Lok Restaurants (2000) 540 % has, through its wholly-owned subsidiary, Tung Lok Millennium, incorporated a wholly-owned entity by the name of Camo Café & Bar on March 21.
On the same day, Tung Lok Millennium and Camo Café & Bar entered into a joint management agreement with Safra National Service Association under which Tung Lok Millennium and Safra will jointly manage the casual dining restaurants to be operated by Camo Café & Bar.
Under the joint management agreement, Tung Lok Millennium will subscribe for all the shares in Camo Café & Bar such that the latter will have an initial issued and paid-up capital of $1,000 over 1,000 shares. The payment will be funded using internal resources.
Safra will also grant initial loans to Camo Café & Bar. The loans will be equivalent to the issued and paid-up capital of Camo Café & Bar as subscribed for by Tung Lok Millennium from time to time. Camo Café & Bar will only repay such initial loans from Safra upon the termination of the joint management agreement or when Tung Lok Millennium recovers its invested share capital in Camo Café & Bar.
Both Tung Lok Millennium and Safra are obligated to grant unsecured and interest-free loans to Camo Café & Bar in equal proportions when needed.
Safra will also be entitled to 50% of the profits after tax from Camo Café & Bar’s business.
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The first outlet under Camo Café & Bar will be located at Safra Choa Chu Kang.
Shares in Tung Lok closed at 12 cents on March 21.
