Innopac hit with letter of demand for $14.7 mil; asks for trading suspension

Innopac hit with letter of demand for $14.7 mil; asks for trading suspension

By: 
PC Lee
07/06/18, 08:12 am

SINGAPORE (June 7): Investment holding company Innopac Holdings has received a letter of demand from Saxo Bank.

In a June 1 letter of demand from law firm Rajah & Tann Singapore, Saxo Bank is seeking a payment of approximately $14.7 million from Innopac to settle the negative account balances under the accounts maintained by its subsidiaries, Heritage Investment Corporation and Wang Da Investment.

Although the negative account balances were incurred by the subsidiaries without any guarantee by the company, Saxo Bank is alleging Innopac is liable for the claim based on a Memorandum of Understanding signed on Dec 24 2013.

No legal proceedings have been commenced by Saxo against the company at this stage though, said Innopac in a filing made on Wednesday night which was signed off by Chairman and CEO Wong Chin Yong.

In consultation with its solicitors, Innopac said will be evaluating the basis and merits of the claim and will take appropriate action accordingly.

Pending resolution of the claim, the board said the company is unable to reasonably assess and inform the market of its financial position and will be requesting for trading of its shares to be suspended.

Innopac reported a pre-tax loss of $2.23 million for the fiscal year ended Dec 2017. It had a negative working capital of $11.4 million as at end Dec 2017.

On May 30, Innopac announced a placement of 5 billion new shares at 0.1 cent each to raise as much as $5 million. Out of the net proceeds, $2.25 million will be used to support new business investments and acquisitions.

On April 13, Innopac was issued with a notice of compliance by the Singapore Exchange to appoint a professional firm to review the group's investment processes and to recommend improvements in governance controls.

In January, SGX suggested the company should be suspended under listing rules as it was a cash company without a core business. However, Innopac denied it was a shell, claiming it has other investments in properties, joint ventures and available-for-sale investments.

Interestingly, Innopac CEO Wong's name was mentioned in a Singapore court on May 31 during the committal hearing related to the 2013 penny stock crash.

Back in Oct 2, 2013, Goldman Sachs had made margin calls on four accounts allegedly controlled by former IPCO CEO Quah Su Ling who will be facing trial for her role in the crash.

While Quah owned one of the accounts, the other three were individually owned by former LionGold director Ng Su Ling, former Blumont executive director James Hong, and Wong.

Shares in Innopac last traded at 0.2 cent.

CapitaLand Mall Trust upgraded to 'buy' by UOB on Jurong Lake District plans, Funan launch

SINGAPORE (May 27): CapitaLand Mall Trust will benefit from the development of Jurong Lake District (JLD) as it has three retail malls located within Jurong Gateway, says UOB KayHian. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income IMM Building, JCube and Westgate, which in total accounts for 20% of CMT’s portfolio valuation, are located within Jurong Gateway and adjacent to Jurong East MRT station. Meanwhile, Funan, which is about 90% pre-committed for retail space and 98% pre-committed for office space, is scheduled to open next month. See als....
Read More >>

Time to 'buy' MindChamps as growth initiatives bear fruit: RHB

SINGAPORE (May 27): RHB Research continues to keep MindChamps Preschool at “buy” at a lower target price of 83 cents compared to 87 cents previously, indicating a 26% upside plus 2.2% yield. The reduced target price comes after cutting FY19-20F earnings by 7% and 11%, respectively, upon management indications that adopting SFRS 16 has negatively impacted the group’s 1Q19 pre-tax profit by about $90 million or -15%. In a May 17 report, analyst Juliana Cai says she nonetheless remains positive on MindChamps as she expects the group to start reaping returns from its investments as its....
Read More >>

Ascendas-Singbridge establishes co-innovation lab with IMDA & Enterprise Singapore

SINGAPORE (May 27): Singapore’s smart nation ambitions have been further bolstered by a new partnership between Ascendas-Singbridge, Infocomm Development Authority of Singapore (IMDA) and Enterprise Singapore (ESG) to form the Smart Urban Co-Innovation Lab. All three parties are looking to have a total of 30 co-innovation projects come out from the lab, which is expected to be launched at the end of the year as the first developer-led lab in Southeast Asia. This announcement follows last year’s call for innovation led by IMDA, Ascendas and JTC. Ascendas has published 12 probl....
Read More >>