ecoWise shareholders with 11.3% stake to convene EGM to oust deputy CEO, appoint 3 directors

EIGHT shareholders of beleaguered ecoWise Holdings have sounded their intention to convene an extraordinary general meeting (EGM) on Apr 14 via electronic means to remove deputy chief executive Cao Shixuan from both his office as a director of the group and all his appointments with the company and its associated firms, as well as to appoint 3 new directors.

These shareholders collectively own some 107 million ordinary shares of ecoWise, or a collective stake of about 11.3 per cent. Two of the 8 shareholders were also part of the group of shareholders that had requisitioned for an EGM to be held on Aug 13 last year to remove Cao from his position, among other resolutions.

This EGM, however, did not proceed as Cao had obtained an interim injunction from the High Court to prohibit the convening of the EGM.

All of the 8 shareholders were also part of the group of shareholders that called for another EGM to be held on Nov 26 last year, but this EGM also fell through due to a "voluntary" postponement.

The 3 new directors that these shareholders have put forth to be elected as non-executive directors of ecoWise with effect from the date of the EGM are Danny Oh Beng Teck, Gan Fong Jek and Tan Poh Chye Allan.

No further details were given about these 3 people, only that they have reportedly provided the "relevant information" pursuant to the respective Catalist rules, and have been interviewed by ecoWise's current sponsor W Capital Markets.

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The resolutions do not appear to be interconditional. If the resolution to oust Cao is passed, the company will have only 1 executive director, Lee Thiam Seng.

If the 3 new directors are appointed, ecoWise will have 6 non-executive directors until the company's next annual general meeting where shareholders can put the composition of the board to a vote.

ecoWise's board of directors said the special notice and the notice of the EGM do not specify the background and reasons for each of the proposed resolutions that were tabled, and do not contain information relating to the proposed new directors that are required under the Catalist rules.

The board also flagged that the deadline set out in the notice of the EGM for CPF and SRS investors to approach their respective agent banks and SRS operators is inaccurate. ecoWise also does not intend to prepare a circular in respect of the EGM.

The EGM is slated for Apr 14 at 2.30 pm. The board said it will update shareholders as and when material developments arise.

In a separate filing on Wednesday (Mar 16), ecoWise revealed that recent developments indicate "material uncertainty" of the company's ability to continue operating, in response to queries from the bourse operator on the board's assessment of the company's ability to continue operating as a going concern. Several Malaysian banks have been chasing the company for overdue payments totalling more than RM3 million (S$974,927).

The company is also still unable to pay a security deposit of S$691,200 to the National Environment Agency for extending its existing lease on a property due to its current financial position.