SINGAPORE (THE BUSINESS TIMES) - The two-man board of Axington Inc is engaging with controlling shareholders Nelson Loh and Terence Loh to obtain clarity on strategic changes to be made in the business direction of the company, the Catalist-listed firm said in a bourse filing late on Thursday (Sept 10).
It added that its board understands the Loh cousins are continuing to "explore strategic possibilities with respect to the company".
Axington was responding to queries from the Singapore Exchange (SGX) submitted on Wednesday. The bourse operator had asked for an update on the strategic changes to be made in Axington's business direction, and an update on the business and operations of the group in relation to the executive decision-making function and management of the company.
SGX also asked Axington to provide an update on safeguards put in place to ensure that the utilisation and/or deployment of the group's assets is in the best interest of the group, in consideration of the possible strategic changes to the business direction.
The professional advisory services group had in July proposed to change its core business to the provision of medical and consumer wellness services, and investments in medical technology, robotics and artificial intelligence applications in the medical and consumer wellness space.
Following controversy surrounding a bid for English football club Newcastle United by the Lohs and Axington's former non-independent, non-executive chairman Evangeline Shen, Axington on Sept 6 requested a voluntary suspension of its shares, pending the release of an announcement in relation to strategic changes in its business direction.
Ms Shen and four other directors also resigned from the board in August due to, among other reasons, expected changes in the company's business direction, Axington had said.
In its response to SGX on Thursday, the company said its shares will continue to remain suspended pending the release of the announcement.
It added that, following the resignation of the former directors, its board is in the midst of identifying suitable candidates to be appointed as executive personnel to oversee the company's day-to-day operations, and the implementation of any strategic changes to the business direction. The company is in the process of reviewing the expertise and experience of these candidates, and will make an announcement to update shareholders in due course.
Axington Singapore remains the company's sole operating subsidiary. Axington ceased operations in Malaysia following the divestment of subsidiary Axcelasia Taxand on April 15, and is in the process of striking off three more dormant subsidiaries, namely Axington Lao, Audex Governance and Axcelasia Vietnam.
The company said that its audit committee, remuneration committee and nominating committee currently do not comply with the Code of Corporate Governance 2018 and the Catalist Rules. Its board will endeavour to fill the vacancies according to requirements "as soon as practicably possible", it added.
Axington also said that it has taken steps to have company documents handed over from the former executive team, and has begun the process of making changes to the authorised signatories of company bank accounts.
The counter last traded at $0.19 on Aug 25.
