SINGAPORE - Beleaguered social media company YuuZoo Networks Group (YNG) Corp, formerly known as YuuZoo Corp, is closing all its Singapore-based subsidiaries and terminating all Singapore-based employees.
This was a "direct consequence" of its trading suspension, the mainboard-listed company said in a regulatory filing submitted just before the market opened on Monday (March 18).
The group said it was unable to pay local salaries, including that of its Singapore chief executive officer, as it was unable to access cash funds seized by the Inland Revenue Authority of Singapore (Iras), which were returned via a cheque some months later after it 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 YuuZoo said prevented it from accessing the returned funds.
YuuZoo added that other Singapore-based banks also rejected its request to open an account, and it has been unable to raise new funds.
YuuZoo added it has written to the Singapore Exchange to request that its share trading suspension be lifted to raise new funds that have been committed, and allow shareholders to make trading decisions in the company. Meanwhile, it will continue its operations from other offices around the world.
Attempts by The Business Times to contact YuuZoo on Monday have been unsuccessful.
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".
The company added that the SGX had also refused to accept its response, and asked the Commercial Affairs Department (CAD) to investigate the company.
"The CAD investigation, which soon has been going on for a full year, has not revealed any wrongdoing by the company. 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," the statement added.
Correction note: The article has been edited for clarity.