SINGAPORE (June 12): YuuZoo Networks Group, the e-commerce company criticised of poor corporate governance, is forging ahead with the development of a Nordic Sport Town property project despite a trading ban of its shares.
See: Scrutinising YuuZoo’s deals
In a Wednesday morning filing, YuuZoo announced it has agreed on a definitive timetable for the project with Sun Tze, the mayor of Harbin city in China, and will start building on May 1, 2020.
Under the agreement, YuuZoo plans to develop the 85ha river-fronting prime land. Its master plan includes the building of residences, hotels, a sports arena, commercial real estate, educational facilities, tourism projects and other developments by the river.
YuuZoo will also run all e-commerce, e-sports, e-services and e-payments activities in the area.
"Modern real estate makes extensive use of a wide range of the eServices YuuZoo has developed. The downstream integration of the development and management of real estate should enable the group to generate significant new revenue through control of the entire value chain," says YuuZoo in its filing.
YuuZoo claims it had faced major challenges in moving forward with the massive project, due to the trading ban imposed by SGX.
However, the group says it has managed to raise funds, enabling it to carry on with the planning and development of the project.
The IRAS has also returned funds that were "wrongly" seized from the group, adds YuuZoo.
In April, the Singapore Exchange Regulation (SGX RegCo) reported YuuZoo to the "relevant authorities" for possible breaches of the Securities and Futures Act, following the issue of a second notice of compliance to the e-commerce company in less than a month.
SGX RegCo said the independent auditor charged to investigate claims of poor corporate governance in YuuZoo was not given the necessary access to information and data required to perform the review. In addition, EY said the review was restricted by scope exclusions imposed by YuuZoo.
See: SGX reports YuuZoo to 'relevant authorities' for possible breach of Securities and Futures Act after issuing notice of compliance
Thomas Zilliacus, the company’s chairman, is also under investigations.
See also: YuuZoo confirms CAD investigation into company and chairman Zilliacus
Trading of shares in YuuZoo were suspended on March 19 after the statutory auditors of YuuZoo informed the company and SGX that they are "unable to obtain sufficient appropriate audit evidence" to provide an opinion required in an earlier March 5 notice of compliance.
Shares in YuuZoo last traded at 3.8 cents before the ban.
