Mission Well Limited, which owns a 10% stake in QT Vascular, has issued an open letter to QT Vascular’s shareholders on Nov 16.
The letter was emailed to The Edge Singapore after market close, and after QT Vascular’s request for halt in the trading of its shares at 1.11pm on the same day.
In its letter, Mission Well Limited has asked its fellow shareholders to petition to remove four members of QT Vascular’s board.
They are: Eitan Konstantino, CEO and executive director; Sho Kian Hin, independent director; Momi Brosh, executive director; and Ng Boon Eng, another independent director.
In the letter, Mission Well Limited listed a total of 10 concerns it had pertaining to QT Vascular.
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These include the company’s consecutive losses for the 9MFY2021 ended June, for the FY2020 ended December, as well as the FY2019.
The group has also generated zero revenue for the 9MFY2021, noted Mission Well Limited.
It adds that QT Vascular had net current liabilities of some US$2.6 million ($3.5 million) as at Sept 30.
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Mission Well Limited also highlighted QT Vascular’s proposed private placement to raise $7.3 million on May 25 to fund the 60% acquisition of Asia Dental Group.
“Based on the management accounts of the Healthcare Group, the unaudited pro forma combined net asset value and net tangible assets (collectively the net book value) of 60% of the Healthcare Group as at Dec 31, 2020, is approximately $2.1 million. The purchase consideration would have represented a premium of approximately 3.7 times the net book value of [Asia Dental Group],” reads the letter.
The proposed placement price of 0.18 cent per share also represented a steep discount to the group’s shares of 0.6 cent as at May 24.
Furthermore, Mission Well Limited highlighted that its CEO Konstantino, independent director Sho, and ex-director Mark Allen Wan, had been reducing their stakes in QT Vascular in recent years.
Konstantino holds a 0.41% stake in QT Vascular as at Sept 1, 2020, from his 2.83% stake as at Dec 20, 2018.
Sho no longer holds any shares in QT Vascular as at Sept 11, 2020, from his previous 0.1% stake as at June 27, 2018.
Wan, too, does not hold any shares in QT Vascular as at Jan 4, 2019, from his 2.62% stake on Nov 20, 2018.
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“QTV was listed on April 29, 2014 issuing 196.4 million shares at 28 cents per share, raising an estimated $50.3 million in net proceeds. Since FY2014 to FY2020, the group had paid out an estimated remuneration of $8.0 million to its CEO, $7.5 million to its board of directors and $8.9 million to its top three executives,” stated the letter.
“These amounted to approximately $24.4 million in total remuneration paid out from FY2014 to FY2020. However, during FY2014 to FY2020, the group had recorded cumulative net losses attributable to shareholders of approximately US$109.7 million,” it continued.
“From FY2014 to FY2020, a total remuneration of $8,873,964 was paid out to the top three key management personnel (excluding the CEO and the executive director),” it added.
Shares in QT Vascular last traded at 1 cent.
