YuuZoo Networks Group Corp, formerly YuuZoo Corporation, is closing all its Singapore-based subsidiaries and terminating all Singapore-based employees.
This was a "direct consequence" of its trading suspension, said the mainboard-listed social media company in a regulatory filing submitted just before the market opened yesterday.
YuuZoo said it was unable to pay local salaries, including that of its Singapore chief executive officer, as it could not access cash funds seized by the Inland Revenue Authority of Singapore (Iras). The funds were returned via a cheque some months later, after Iras found no taxes were owing.
In the interim, YuuZoo's account was closed by its bank, which subsequently turned down its request to open a new account, which the company said prevented it from accessing the returned funds.
YuuZoo said other Singapore-based banks also rejected its request to open an account, and it has been unable to raise new funds.
The company said it has written to the Singapore Exchange (SGX) to request the lifting of its trading suspension so it can raise new funds that have been committed, and let shareholders make trading decisions in the firm. Meanwhile, it will continue its operations from other offices around the world.
YuuZoo's CEO resigned on March 5. The resignation of Mr Mohandas, who goes by one name, took effect yesterday.
However, Mr Mohandas refuted an SGX announcement yesterday designating him as a non-executive director of the company, saying he no longer holds any role in the company. The departure of Mr Mohandas - YuuZoo's former chief operating officer who was named CEO in April last year - is the seventh senior exit in a year.
YuuZoo's shares were first suspended in March last year. Its auditor at the time, RT LLP said a disclaimer had been issued to YuuZoo, in response to questions posed by SGX, because the auditor had been "unable to form an opinion due to limitation of scope".
In April last year, the company said it was being investigated by the Commercial Affairs Department (CAD) for possible breaches of the Securities and Futures Act. The CAD raided YuuZoo's premises and interviewed former staff.
But YuuZoo said yesterday that the CAD investigation "has not revealed any wrongdoing". It added: "This is as expected, as the company since the beginning of the investigation has shown it has not committed any breach of the rules SGX asked CAD to investigate."
Correction note: The article has been edited for clarity.