SINGAPORE - Chinese canned vegetable and fruits producer Sino Grandness Food Industry Group has applied to the Singapore bourse for an extension of time to hold its annual general meeting (AGM) for FY2018, and to release its financial results for the first quarter ended March 31.
The company is seeking to push back the deadline to hold its AGM from April 30 to May 31, and to extend the deadline to release its Q12019 results from May 14 to June 14.
In a regulatory filing on Thursday morning (March 14), Sino Grandness noted that the one reason for seeking the extensions is because the company is addressing a default loan to Soleado Holdings.
Sino Grandness was served a letter of demand by Soleado Holdings in January over a sum of about US$22 million. The sum refers mainly to an outstanding convertible loan principal amount, default interests payable and reimbursement of the amount of all costs and legal expenses, and includes default interest accruing at 15 per cent per annum, as well as associated fees, costs and expenses.
According to Sino Grandness, it also experienced high staff turnover and reduced staff strength in its finance team for fiscal year 2018.
"The disruption of the staff movement has an impact on the accuracy of the financial information, which causes delay in finalising the financial results for FY2018," the company said.
It added that, as the group's current market cap is lower than its net assets, the company's external auditors had requested formal valuations to be done on the property, plant and equipment of its principal subsidiaries, namely Grandness (Sichuan) Foods Co, Grandness (Shanxian) Food Co, Garden Fresh (Hubei) Food & Beverage Co, and Grandness (Anhui) Foods Co.
Sino Grandness said also that more time was needed by the management and the external auditor to obtain certain outstanding audit confirmation replies, and to follow up on pending matters including various site vists in order to satisfactorily conclude the audit procedures.
It will also require time thereafter to print, perform accuracy checks, distribute its annual report, and to observe the 14 days' notice to shareholders before conducting its AGM, the company said.
Shares in Sino Grandness closed at 5.1 cents apiece on Wednesday, up two per cent, or 0.1 cent.