Metech enters $3m interest-free loan agreement with unit general manager

The loan will be used for business diversification and general corporate and working capital purposes.

Metech International (Metech) has entered into a $3m interest-free loan agreement with Cao Shixuan, a general manager of a subsidiary of the company.

This is the second loan agreement between Metech and Cao, following the first interest-free loan of $1m, signed on 25 March.

The loan will be used for business diversification-related purposes and general corporate and working capital purposes.

The loan is expected to mature after 12 months from the date of the loan agreement.

Under the conditions of the loan, Cao shall at all times continue to be employed by Metech and Cao has the right to demand repayment if the loan is not consistently utilised for the purposes stated in the agreement.

Should Metech fail to repay the loan, the company and the lender shall negotiate to either extend the repayment date and/or convert the outstanding amounts into shares of the company.