SINGAPORE (Jan 21): YuuZoo Shareholders Association (YSHA) on Jan 20 claimed that shareholders representing more than 10% of the voting rights of YNG Corporation, formerly known as YuuZoo Corporation, have called for a special general meeting (SGM).
See: YuuZoo shareholders set up group to get SGX to lift trading suspension
The SGM is to be held as soon as possible to discuss and decide on the strategy, organisation and business of the company.
The call came in view of the continued trading suspension of YuuZoo’s shares, which is currently in its 10th month.
In a media release issued on Sunday, the group said that the suspension has “seriously damaged shareholder interest and value, and continues to hurt YuuZoo and its business”. The YSHA has requested for a immediate lifting of the suspension to ensure that the company can function normally and further erosion of shareholder value is stopped.
The group said that the trading suspension imposed by SGX RegCo had resulted in it losing YuuLog, the logistics operation it had set up in France, in Aug 2018, as the group was unable to raise funds the subsidiary needed when switching to the new business model YuuZoo after the acquisition had started to implement.
The loss of YuuLong resulted in more then 200 employees losing their jobs and shareholders losing a real estate valued at about $10 million, as well as losing a business “with a huge potential”.
In Oct 2018, YuuZoo shareholders have elected a new board, but three months later have still yet to receive information on when the trading suspension may be lifted, nor on what action the group is taking to achieve this.
Shareholders are also concerned that the group has yet to appoint a new auditor with only three and a half months remaining until the next annual general meeting (AGM).
Finally, the shareholders believe the company due to the continued trading suspension needs to reassess its business strategy and operations to ensure that it can continue to build a profitable business even during the suspension.
YSHA believes that the board composition needs to be reviewed, in light of YuuZoo’s growing global operations. The board requires members with relevant background and experience, with strong compliance and regulatory background.
The shareholders who have called for the SGM have informed the company that they wish for the SGM to discuss and decide on the composition of the board, on the strategy and organisation of the company, on the recapitalisation of the company, on the appointment of a new auditor and on a change of name for the company.
