Cordlife directors seek court block on share issue

The company earlier announced the issuance of 51.2 million shares via private placement. 

Several directors at Cordlife Group Limited have filed an injunction application before the High Court of Singapore to block the company from issuing new shares.

The claimants include Nanjing Xinjiekou Department Store, a controlling shareholder of the company, and Zhai Lingyun and Chen Xiaoling, both non-independent non-executive directors of the company.

The claimants filed the application against the company, acting chairman and non-independent non-executive director, Ho Choon Hou, independent directors Yeo Hwee Tiong and Cheong Tuck Yan Titus Jim, non-independent non-executive directors Yiu Ming Yiu and Chow Wai Leong, and Group CEO Ivan Yiu Pang Fai.

Pending the hearing of the applications, the court had already granted an interim injunction restraining the company and defendants “from proposing to engage or engaging in conduct constituting a contravention of section 157 of the Companies Act 1967,” including the private placement.

Last week, the company announced plans to raise $8.04m by issuing 51.2 million new ordinary shares at $0.16 a piece through a private placement.

Cordlife said it will issue 44.5 million shares to Charming Global Enterprises Limited and the remaining 6.7 million shares to Darren Ng Junwei.

Cordlife said it has been seeking legal advice concerning the application and the interim injunction and will provide further updates to its shareholders in due course.