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Cacola Furniture CEO resigns; potential delisting deadline looms
CACOLA Furniture - which faces potential delisting from the main board - said on Monday that its chief executive officer has resigned. No reason was cited, but a separate regulatory announcement said that the former CEO, Zhou Zhuo Lin, has retired. The 62-year-old was appointed CEO in late 2011.
No replacement was named by the company.
Cacola is currently on the Singapore Exchange's watch-list for failing to meet profitability and market capitalisation thresholds. The company must raise either or both of its earnings and market capitalisation by March, or face potential delisting.
In December, Cacola said that it had taken a S$1 million five-year, 6 per cent convertible loan from Chinese businessman Ge Jian Ming to fund acquisitions.
If fully converted into Cacola shares at the initial conversion price of 0.684 Singapore cent per share, the conversion shares will represent 17.1 per cent of Cacola's enlarged share capital. Mr Ge is "investing in the company for investment purposes only and has no intention of influencing the management of, or exercising control over, the company", Cacola said. The investor will not hold 15 per cent or more of the company's shares without shareholder approval, the company added.