Ipco board claims former execs did not allocate placement proceeds as planned
The board of Ipco International said on Wednesday that most
of the S$1.58 million raised from a share placement last year has been diverted
to working capital instead of a real estate project as originally planned.
The intended use of the placement proceeds was 50 per cent
for the purchase of equipment and development of land in Seattle through Capri
Investments, the group's real estate development subsidiary, and 50 per cent
for working capital.
In fact, close to S$1.34 million was used for working
capital purposes, including payroll. Only S$187,000 has gone towards Capri
Investments and a remaining S$61,000 was unspent as at March 30.
In early January, former executives of the company diverted
the proceeds to working capital, Ipco's board said. It did not name these
former executives.
Because the actual use of proceeds is not in accordance with
the intended use as earlier stated, the board said it has reported the alleged
non-compliance to the Singapore Exchange's (SGX) regulatory officers.
"The board is investigating the break-down of corporate
governance by former executives," it wrote in an exchange filing on
Wednesday.
At the end of October last year, Ipco had net current
liabilities of S$6.8 million. Last month, Ipco's board wrote to the SGX
requesting more time to produce the unaudited accounts for the quarter ended
Jan 31, 2018.
Australian investor James Blytham joined Ipco as chief
financial officer in March after putting S$1.58 million into Ipco through the
placement.
Interim chief executive Goh Hin Calm quit last month while
executive director Carlson Smith was ousted.
Marissa Lee
11 April 2018
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