Biomedics Laboratory to undergo voluntary liquidation amidst revenue slump

The company has faced challenges in carrying out its primary laboratory services business.

Biolidics Limited will be placing Biomedics Laboratory, its wholly owned subsidiary, under creditors’ voluntary liquidation (CVL) amidst a huge revenue decline.

Incorporated in Singapore in 2019, Biomedics Laboratory offers Polymerase Chain Reaction (PCR) and other medical testing services. Currently, it has five employees and has struggled to secure new business contracts whilst facing challenges in its primary laboratory services.

Despite recent cost-cutting measures, the subsidiary will proceed with the CVL which will result in Biolidics having three non-active entities and three dormant entities including Biolidics (Shanghai) Co., Ltd, Biolidics Pty Ltd, and Clearcell Pte. Ltd..

Representatives from Deloitte & Touche LLP have been nominated as Joint and Several Provisional Liquidators of the Subsidiary, subject to confirmation at the creditors meeting on 4 July.  

The CVL will result in a lower net tangible liabilities (NTL) of $1.94m and NTL per share of $0.30, assuming that the CVL commenced on 31 December 2023.

Meanwhile, net loss will be reduced to $1.5m and loss per share will be $0.26, assuming that the CVL commenced on 1 January 2023.

The subsidiary will issue notices to its respective creditors to convene meetings on 4 July.