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Natural Cool board defends position ahead of second EGM
MEMBERS of the board of air-conditioning specialist Natural Cool Holdings have issued a statement defending their position ahead of a second extraordinary general meeting (EGM) next Thursday.
The EGM is about revoking the company's general share issuance mandate. It was called by two shareholders unhappy about the board's decision to place out 27 million new shares to incoming chief corporate officer Ng Quek Peng.
The board - except for CEO Tsng Joo Peng - reiterated that the two shareholders who called for the EGM are connected to HMK Energy, an oil exploration firm divested by the company recently.
It added that it has not abused its share issue mandate as the total number of shares placed out was a relatively small proportion of other shares that can be issued.
It said that the share issue mandate gives the company administrative flexibility and promotes cost savings, so it can quickly take advantage of market conditions.
And it said that the second EGM was an unnecessary cost and inconvenience, with estimated costs of S$50,000.
The board also said that there was unauthorised use of shareholder personal data, with people approaching shareholders making certain representations.
Natural Cool last traded at S$0.191, down S$0.009.