SINGAPORE (THE BUSINESS TIMES) - NutryFarm International requested a trading suspension on the Singapore Exchange (SGX) before the market opened on Monday (April 11), pending a review of ongoing concerns.
Shares of the mainboard-listed durian and health food distributor last closed flat at 8.5 cents on April 4. It had requested two trading halts last week.
The first one on April 5 was over an announcement that its subsidiary LottVision and its corporate secretarial services provider Lee & Lee had been issued letters of demand from its creditor Corpbond IV for NutryFarm to pay an outstanding sum of $3.9 million and US$271,849 (S$370,552) that were due on March 31 this year.
This money is part of the principal amount of a loan as well as the interests accrued that NutryFarm took from Corpbond IV and Furong Investments on Oct 30, 2017.
The letter of demand to LottVision, which was issued on April 1, stated that Corpbond IV will take legal action against the company if it fails to pay the money it owes within 10 days from the date the letter was issued.
As for the letter to Lee & Lee, it stated that CorpBond IV will declare the total debt amount to be immediately due if the outstanding amount is not paid within five days from when the letter was issued.
NutryFarm had said in the bourse filing then that it will be seeking legal advice on the issue and will take appropriate action.
After requesting to lift the trading halt after the market closed on April 5, the company requested another halt the next day, pending confirmation on ongoing concerns from SGX queries.
NutryFarm was recently questioned over the appointment of its executive chairman Wu Yongqiang, who had taken on the role since March 8.
Mr Wu has been a substantial shareholder of NutryFarm since June 30, 2021, and he owns a 13.97 per cent stake in the business as at March 9, 2022.
SGX queried NutryFarm over the suitability of Mr Wu as a board director given his many ongoing lawsuits in China.
NutryFarm responded on March 14 that it is satisfied with Mr Wu's character and integrity for him to be appointed as the company's new executive chairman, even though he is involved in 18 civil suits in China as it has assessed that these cases are commercial in nature.
It added that the company's nominating committee has reviewed each of the civil suits, along with an opinion report from Guangdong Guanghe Law Firm, and has assessed that they do not involve fraud, dishonesty, misrepresentation, misconduct or mismanagement on the part of Mr Wu.
NutryFarm also said there is no potential conflict of interest between its business and fresh vegetable and fruit distributor KTL Global, which Mr Wu is serving as a non-executive chairman on the board.
In another response to further queries from SGX on the potential conflict of interest that could arise given Mr Wu's position in both companies, NutryFarm said in a bourse filing on March 25 that it intends to appoint more independent directors and retire existing ones.
It added that any transactions with KTL Global and its subsidiary Tianci Agritech will also be approved by the board and reviewed by the audit committee. Mr Wu will abstain from voting on any matters relating to KTL Global and Tianci Agritech, noted NutryFarm.
