Cordlife on Monday (May 13) said that it intends to terminate the S$8.2 million private placement announced on Apr 17.
This comes after the High Court upheld an interim injunction that restrains the company from issuing new shares temporarily and dismissed its appeal to overturn it.
Controlling shareholder Nanjing Xinjiekou Department Store, as well as non-independent non-executive directors Zhai Lingyun and Chen Xiaoling had filed an injunction application against the company, its acting chairman Ho Choon Hou, independent directors Yeo Hwee Tiong and Titus Cheong, non-independent non-executive directors Yiu Ming Yiu and Chow Wai Leong, and group chief executive Ivan Yiu (Yiu Pang Fai).
Pending a hearing on this application, an interim injunction was granted by the High Court on Apr 19. On Apr 25, the company filed a setting aside application to set aside the interim injunction, which was, however, dismissed on May 10.
On Monday, the troubled cord blood bank said that the Ministry of Health (MOH) has issued it a notice highlighting the importance of having local directors ahead of its May 14 annual general meeting (AGM) that will decide if three local directors will be replaced.
MOH said that Cordlife’s board should provide sufficient oversight and directions to its local management and laboratory operations teams. The new board should also respond expediently to the MOH’s queries and ensure business continuity while rectifying its lapses, the ministry added.
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As the new board should ensure a smooth and proper transition, particularly in relation to all outstanding regulatory matters, a relevant factor given the company’s present circumstances would be whether the board members will be present in Singapore, said MOH.
Nanjing Xinjiekou wants to remove four directors – acting chairman Dr Ho Choon Hou and independent directors Yeo Hwee Tiong, Titus Cheong and Joseph Wong. Wong has said he will retire after the AGM.
The substantial shareholder also seeks to appoint three new directors – Dr Teo Tong Kooi, Dr Xu Tianhong and Cai Yong – to replace the three Singapore-based directors, Dr Ho, Yeo and Cheong.
Last Friday, both Nanjing Xinjiekou and TransGlobal Real Estate Group specified their proposed board composition and laid out separate plans to address the company’s issues after the AGM.
Shares of Cordlife : P8A 0%closed flat at S$0.126 on Friday.
