Two shareholders of medtech company QT Vascular have sent in EGM requisition notices to oust the existing board and to replace its own candidates.
The requisition was on Nov 20 made jointly by an entity called Mission Well, which holds nearly 254.2 million shares, or 11.35% of the company as Nov 12, and one Tansri Saridju Benui, who owns 50,000 shares as at Nov 16.
Under Singapore company rules, EGMs can be called by at least two shareholders in concert holding more than 10% of the shares.
The company, meanwhile, announced the resignation of CEO Eitan Konstantino. He will leave by end of the month, the company said on Nov 20, instead of by end of the year as indicated.
The first requisition notice for an EGM to be held on Dec 6 is to appoint Tansri Saridju Benui; Christian Kwok-Leun Yau Heilesen; Stanley Leung Yu Tung; Zhou Jia Lin and Chay Yiowmin as directors of QT Vascular.
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Another requisition notice for a separate EGM to be held on Dec 15 calls for the removal of three existing directors: Momi Mimon Brosh; Sho Kian Hin and Ng Boon Eng.
“The requisitioning shareholders are of the opinion that it would be timely for there to be a reconstitution of the board,” states the requisitioning shareholders in their EGM circular.
They add that “the newly reconstituted board comprising the proposed directors has the relevant expertise and knowledge to set and develop effective strategies and explore new opportunities to grow and expand the group which will, in turn, help to maximise shareholders’ value.”
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Prior to the Nov 20 notices, Mission Well and Benui had on Nov 16 filed earlier EGM requisition notices, but withdrew them the following day, according to QT Vascular.
For the 3QFY2021 ended Sept 30, QT Vascular didn’t generate any revenue. It booked a loss of US$596,000, reduced from US$3 million worth of red ink in the year earlier quarter.
Given the extremely fragmented shareholder of QT Vascular, Mission Well, controlled by Heilesen, stands a chance of wresting control of the board.
According to the company’s FY2019 annual report, as at June 30 2020, its single largest shareholder was one Tanhum Feld, who held 197 million shares, or 8.81%, via an entity called MDIE.
CEO Konstantino, meanwhile, was listed in the same year’s annual report as holding nearly 59.2 million shares, or just 2.65%.
According to QT Vascular, Konstantino, as of Sept 1 2020, held 9.19 million shares. The reason why he sold was to “satisfy his tax obligations in the United States, as he is considered a tax resident there.”
From the company’s most recent 2020 annual report, as at March 17 2021, there are no more substantial shareholders left.
The top two shareholdings are held via nominee accounts with Citibank and OCBC Securities with 4.7% and 3.82% respectively. The single largest shareholder listed is one Ho Beng Siang with 67.5 million shares, equivalent to 3.01%.
Photo of Eitan Konstantino by Samuel Isaac Chua
