Stratech Group on Monday said it has "had preliminary discussions with certain parties" to monetize its intellectual properties and seek investments in the group.
The company issued a statement in response to rumours of its negotiations with parties regarding potential investments in the company.
The surveillance and security solutions provider said it will make the appropriate disclosure "should any discussion with parties proceed further".
Stratech Group said it was in negative net equity position as at March 31, 2017 and had liabilities including short term loans and other payables.
The company had earlier proposed to undertake a rights issue of up to 313,436,340 new shares, in which the founders and controlling shareholders, David Chew and Leong Sook Ching, committed to injecting about S$9 million of fresh funds and a further S$2 million to S$3 million of existing loans to the company to address its cashflow and going concern issues.
"In view of the current cashflow requirements, the Board has discussed with the Controlling Shareholders, who have agreed to expedite injection of the said fresh funds," it said in a statement.
The said capital injection would allow company to meet cashflow requirements of the group and address the issue of its ability to operate as a going concern, it said.
It has made applications to the Accounting and Corporate Regulatory Authority and the Singapore Exchange for extensions till end-September to hold its annual general meeting as well as issue its annual report.
Shares in the company were suspended from trading until issues pertaining to repayment for the loan, payroll have been fully resolved.
