SGX flags possible breaches at YuuZoo, issues 2nd notice

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The initial findings from an independent review of mainboard-listed YuuZoo Corp have been referred to the relevant authorities for possible breaches of listing rules.

The company has also been slapped with yet another notice of compliance - its second in as many months - from the bourse operator.

In an exchange filing on Monday, the Singapore Exchange (SGX) said a draft report from YuuZoo's independent reviewer, Ernst & Young Advisory (EY), showed that YuuZoo has not given EY necessary access to information and data. The review was also restricted by scope exclusions imposed by YuuZoo which were "inconsistent with the spirit of an independent review", SGX added.

The bourse said it issued a notice of compliance to YuuZoo on Monday, requiring EY to submit an executive summary of their initial findings to SGX as soon as these are finalised. The company will also be required to publicly release these findings.

The bourse had suspended trading of YuuZoo's shares in March, after the company missed a disclosure deadline tied to regulatory queries over its full-year results for the 12 months ended Dec 31, 2017. The suspension will be lifted when regulators are satisfied that "the state of affairs of the company can be ascertained and the shares... can be traded on a fair, orderly and transparent basis".

YuuZoo appointed EY last October to carry out an independent third-party review after a number of claims and allegations were made against the firm. The review would look into issues raised in emails to the SGX and in articles in The Business Timesreferred to in an announcement on July 17, 2017.

These related to claims filed by former YuuZoo employees against its former financial controller, including two different police reports, one of which was filed over alleged extortion. Claims were also raised by the former financial controller in an email sent to the SGX after his services were terminated.

YuuZoo in July had refuted the various statements and claims in the articles, saying that it believed a subsequent decline in share price could be linked to the allegations.

Chia Yan Min
03 April 2018

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