A GROUP of Cordlife’s directors has filed an injunction application before the High Court of Singapore to restrain the company from issuing new shares.
Pending hearing this application, an interim injunction was granted by the High Court on Friday (Apr 19), said the company on Monday.
The claimants comprise a controlling shareholder Nanjing Xinjiekou Department Store, as well as non-independent non-executive directors Zhai Lingyun and Chen Xiaoling.
The application is 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, as well as group chief executive officer Ivan Yiu (Yiu Pang Fai), from engaging in conduction that constitute a contravention of Section 157 of the Companies Act 1967. The section outlines duty and liability of company officers.
Both Zhai and Chen, based overseas, expressed reservations about Ivan Yiu’s appointment as new group CEO and abstained from the vote in February.
Amid investigations by the Commercial Affairs Department (CAD), the duo postponed interviews with CAD to May 21, while director Yiu Ming Yiu was arrested and released on bail after getting called for a CAD interview in early April. This was after four directors and former group CEO Tan Poh Lan were arrested by CAD and released on bail in March.
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The troubled cord-blood bank announced on Apr 17 its proposal to raise S$8.2 million by issuing some 51.2 million new ordinary shares at S$0.16 apiece.
Based on the Apr 17 announcement, it has entered into two separate subscription agreements with Charming Global Enterprises (CGE) and Darren Ng, a high-net-worth individual based in Singapore. Through respective private placements, CGE will subscribe for 44.5 million of the new shares for S$7.1 million, while Ng will purchase 6.7 million shares for S$1.1 million.
Both will collectively hold about 16.6 per cent of Cordlife’s enlarged capital post the new share placement, which will result in the company’s share base increasing to 307.5 million from 256.3 million currently pursuant to the private placement.
Cordlife’s : P8A 0% counter last traded down S$0.022 or 15.2 per cent at S$0.123 at an all-time low on Friday before it requested a trading halt. It resumes trading on Monday.
