Cordlife cancels $8.2m private placement

The Ministry of Health also wrote to the company regarding its local directors. 

Cordlife announced on Monday that it is withdrawing its planned $8.2m proposed subscription that was supposed to help strengthen the company’s financial position. 

The decision was made after the Singapore High Court dismissed its setting aside application with costs to be paid by the company claimants in the sum of $20,000. It also upheld an interim injunction that prevented Cordlife from issuing new shares. 

To recall, controlling shareholder Nanjing Xinjiekou Department Store and non-independent non-executive directors Zhai Lingyun and Chen Xiaoling, applied for an injunction against the company, and several other executives including acting chairman Ho Choon Hou.

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Pending the hearing for this, the High Court granted an interim injunction on 19 April. Cordlife responded with a setting aside application on 25 April, which was dismissed on 10 May.

In a separate regulatory filing, Cordlife said it has received the notice from the Ministry of Health emphasising the board member requirements under the Healthcare Services Act 2020. This was ahead of the company’s annual general meeting on 14 May that will decide on the fate of three local directors. 

The MOH told Cordlife that its appointees should be suitable persons in their role and that the composition of the board “satisfies the skills and competencies requirements prescribed or as specified in any code of practice if not prescribed.”

Given ongoing investigations involving Cordlife, the ministry said the board must be able to provide sufficient oversight and directions to its local management and laboratory operations teams, respond expediently to the MOH's queries and directions, and ensure continuity and stability in the company's operations and rectification of its lapses,

The MOH said the new board should ensure smooth transition, particularly in relation to all outstanding regulatory matters. It also noted that another relevant factor is if the members of the board will be present in Singapore.

Reports have said that substantial shareholder Nanjing Xinjiekou wants to remove four directors, namely Ho, and independent directors Yeo Hwee Tiong, Titus Cheong, and Joseph Wong. 

Nanjing Xinjiekou wants to replace Singapore-based directors Ho, Yeo and Cheong with Teo Tong Kooi, Xu Tianhong, and Cai Yong.

“The company has duly noted the contents of the MOH notice, and will update its shareholders and the investing public if there are any material developments in relation to the above, in accordance with the requirements under the Listing Manual of the Singapore Exchange Securities Trading Limited,” Cordlife said.