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China Star Food Group receives letter of demand
SWEET potato snacks maker China Star Food Group has received a letter of demand from an individual claiming a breach of agreement due to the group's reverse takeover.
In an exchange filing on Saturday, the firm said that it has received a letter of demand dated Aug 19 from lawyers acting for Cheong Chee Hwa alleging certain breaches by the company under a sale and purchase agreement both had previously entered into on Nov 5, 2014.
These breaches were in relation to the sale of Mr Cheong's shares in China Star Food Holdings to China Star Food Group, in connection with the latter's reverse takeover.
The company is now assessing these allegations with its legal counsel and will keep shareholders updated on material developments, said the group.
China Star Food Group listed on the Catalist board in April this year, after completing a S$168 million reverse takeover of cash company Brooke Asia last September. Founded in 2009, the Fujian-based company sells its snacks through a network of more than 300 distributors and wholesalers across China.