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SINGAPORE – Axington Inc’s two-member board has extended the bidding period for a rights issue proposal as it expects “further clarity” from the company’s controlling shareholders, who also own the controversial company that made a offer for the English Premier League. club Newcastle United.
The Catalist-listed company had said on Sept. 3 that it “intends to have the rights issue proceed according to schedule”, despite the exodus of five directors.
But in a filing with the Singapore Stock Exchange late Sunday night (September 6), it announced the extension after SGX consultations and in order to “avoid limiting the possibilities.”
The board of directors noted that Axington’s shares have been voluntarily suspended since August 31 pending news of strategic changes to be made in the company’s commercial direction.
As such, Axington intends, among others, to restart the trading of the “no payment” rights that were due to end on September 3, and to extend the closing date of September 9 for the acceptance and payment of all shares. rights until the suspension has been lifted and the shares resume trading, the board said.
The extension will provide shareholders time to consider the action to take, as well as the opportunity to negotiate the rights “without payment” after the shares are resumed and before making any acceptance and / or request for the rights, shares and excess. shared rights, he added.
The company will make further announcements on the extension and issuance of rights when appropriate, he said.
“As part of a holistic assessment of recent developments, and while waiting for the company to receive more clarity from controlling shareholders, the board continues to evaluate all possibilities in the best interest of the company,” the board added.
Axington’s majority shareholders are cousins Nelson Loh and Terence Loh. The Lohs and their business partner Evangeline Shen are co-founders of the Singapore-registered Bellagraph Nova (BN) group, which made headlines last month by announcing a bid for Newcastle United.
But the company was embroiled in controversy over revelations ranging from doctored images depicting former US President Barack Obama to inconsistencies in claims and retracted press statements.
Shen, a lawyer and jewelry merchant, resigned on Sept. 2 as Axington chair, along with three other directors a week after former U.S. ambassador to Singapore Kirk Wagar resigned from the board.
After Loh took over the company in July this year, Axington announced a plan to shift its core business from career counseling services to providing consumer health and wellness services, and investments in areas such as robotics and artificial intelligence technology.
On July 29, the firm proposed an unsubscribed rights issue of up to 95.2 million new common shares at 10 cents a share, on a one-for-two basis, to raise an estimated $ 9.4 million for investments. commercial and acquisitions and work in general. capital.
He said at the time that Lohs’ company, Dorr Global Healthcare, had irrevocably committed to subscribe and pay its full right to 74.2 million shares of rights, or 77.9 percent of the issue, and to subscribe and pay the total of all others. shares of rights not assumed by other shareholders.
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