SINGAPORE (Oct 27): Innopac Holdings, one of the companies linked to alleged penny stock saga mastermind John Soh, said On Oct 26 that its application to resume trading of its shares has been rejected the Singapore Exchange.

The company on Oct 19 applied to the exchange to resume trading of its shares, which has been in this suspended since June this year.

In a separate announcement, Innopac said it has received a writ of summons sent on behalf of Saxo Bank, demanding a repayment of just over $15 million taken by several subsidiaries incurred some five years ago.

In addition, “there was no clarity, based on the Board’s conclusion that it can “reasonably assess its financial position”, whether and how the Company will be able to operate as a going concern,” the report adds.

Furthermore, the company’s independent auditor had on Oct 12 issued a disclaimer of audit opinion on Innopac’s financial statements, says Innopac.

“The company is evaluating the aforesaid matters raised by SGX and intends to engage with SGX further on the company’s application to resume trading,” says chairman and CEO Wong Chin Yong.

“The company will make further announcements as and when there are material developments on this matter,” he adds.

Earlier, on Oct 9, Innopac, whose former managing director was Soh, said that it found new investors willing to subscribe 8.4 billion new shares at 0.1 cent each to raise gross proceeds of $8.4 million.

In conjunction with the new investments, Wong will be buying over a clutch of subsidiaries now owned by the listed company for $100,000.

The subsidiaries are Heritage Investment Corporation (HIC), Wang Da Investment (WDIL), Golden Eagle Mining (GEM), Extera (EPL) and Malaysian Microalgae Enterprise (MME).

Together, these subsidiaries carry a negative book value of around $8.3 million, as of June 30.

This means if Wong pays $100,000 for these entities, he is paying a premium of 1,012% over the book value of these companies. The listed company can then book a gain on disposal of some $8.4 million.

Back in April 2014, the company announced that Wong was assisting in a Commercial Affairs Department probe.