SINGAPORE (Oct 9): Innopac Holdings, one of the companies tainted by its involvement with the penny stock crash of Oct 2013, is likely to see a new group of shareholders taking control. At the same time, the company plans to cast away a clutch of subsidiaries that owe money to creditor Saxo Bank.
John Soh, alleged mastermind of the crash who is now facing trial, was managing director of the company previously known as Inno-Pacific Holdings between 1995 and 1999.
On early Tuesday morning, the company announced investors will be subscribing to 8.4 billion new shares at 0.1 cent each, raising gross proceeds of $8.4 million. From the net proceeds of $7.95 million, $3.95 million will be used to fund new investments, $1.5 million for general working purposes and $2.5 million for repayment of outstanding loans. According to Innopac, the new investors have no plans to acquire additional shares.