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SINGAPORE – Axington Inc’s board of directors, which has shrunk greatly, said a rights issue proposal will proceed as planned, despite five directors resigning amid controversy surrounding the Bellagraph Nova (BN) group, a company founded by majority shareholders and former Chairman of Axington.
Axington’s two remaining directors, Mr. Low Junrui and Mr. Roberto Dona, also said in a presentation to the Singapore Stock Exchange late night (September 3): “The board wishes to update that the majority shareholders of the company have communicated to the board that they are still exploring and evaluating the strategic options that have been presented to them. “
Once it has more clarity, the board will evaluate the impact and changes, if any, on the proposed resolutions and the postponed extraordinary general meeting (EGM), they added.
On the issue of rights, they said there have been no changes to the schedule of key events as announced on August 21, and that the board “intends for the issue of rights to proceed according to schedule.”
The Catalist-listed company was scheduled to hold an EGM on August 28 for shareholders to approve the rights issue, a name change to NETX, and a change in business address, which is said to have been “inspired” after a conversation between former US President Barack. The majority shareholders of Obama and Axington, cousins Nelson Loh and Terence Loh.
The Lohs and their business partner Evangeline Shen are co-founders of Singapore-registered BN Group, which made headlines last month by announcing a bid for English Premier League soccer club Newcastle United, but became embroiled in controversy over revelations ranging from the adulterated Obama. images to inconsistencies in claims and retracted press releases.
Shen resigned on Sept. 1 as Axington chair, along with three other directors, a week after former U.S. ambassador to Singapore Kirk Wagar resigned from the board.
Axington’s shares, meanwhile, have been voluntarily suspended since August 31, “pending the publication of announcements in relation to the strategic changes to be made in the commercial direction of the company.”
The company, formerly known as Axcelasia, was a provider of professional services such as internal audit and quality control review, primarily to Malaysian companies. After selling its core business in Malaysia to the Tricor Group, it consisted mainly of a small company in Singapore and inactive subsidiaries in Laos and Vietnam.
After Loh took over the company in July this year, Axington announced a plan to shift its core business to providing consumer health and wellness services, and investments in areas such as robotics and artificial intelligence technology. He proposed to acquire Malaysian medical equipment and cosmetic products distributor, Vesta Apex Trading, for $ 12 million to initiate this business change.
Axington also proposed on July 29 a waivable unsecured rights issue of up to 95.2 million new common shares at 10 cents a share, one for two, to raise an estimated $ 9.4 million for business investments and acquisitions and work in general. capital.
It also said at the time that Lohs’ company, Dorr Global Healthcare, had irrevocably committed to subscribe and pay in full its right to 74.2 million shares of rights, or 77.9 percent of the issue, and to subscribe and pay all of the remaining rights for shares not assumed by other shareholders.
Among other things, the schedule for the issuance of rights establishes that the last day for the acceptance and payment of the rights shares would be September 9, that the scheduled date for their issuance would be September 16 and it was expected that they would begin to trading on September 17.
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