Four Axington directors including chairman Evangeline Shen resign

AXINGTON on Tuesday announced that four of its directors, including non-independent and non-executive chairman, Shen Che, have resigned from the company.

Ms Shen, 32, also known as Evangeline Shen, quit after one and a half months in the role, due to "strategic changes expected to be made in the business direction of the company", the Catalist-listed firm said in a regulatory filing.

She tendered her resignation on Aug 29. This was accepted by Axington's board of directors on Aug 30 and effective from that date.

Ms Shen was appointed to Axington's board on July 14 this year following the takeover of the firm by Singaporean cousins Nelson Loh and Terence Loh. The Loh cousins are Axington's controlling shareholders through their company Dorr Global Healthcare International, though neither are directors of the Catalist-listed firm.

Ms Shen co-founded the scandal-hit Bellagraph Nova Group (BN Group) with the duo after a merger of the Lohs' private investment company Dorr Group and her Bellagraph Group in June this year.

The trio came under the spotlight after BN Group admitted to doctoring images of them with former US president Barack Obama. BN Group and its backers have also drawn intense scrutiny since news broke that the Singapore-registered group was bidding for English Premier League club Newcastle United.

Ms Shen's resignation came after the Singapore Exchange's regulatory arm, SGX RegCo, last week said it has "engaged" Axington's sponsor, Novus Corporate Finance, over how it assessed her "experience, expertise, character and integrity".

In addition, Wong Soon Yuh, 41, who was Axington's non-independent, non-executive director and a member of the audit committee, tendered his resignation on Aug 28 which became effective that day. Likewise, Axington said Mr Wong resigned due to "impending changes" in its business strategy.

Separately, Marjory Loh, 37, has resigned as executive director and a member of Axington's nominating committee, with effect from Aug 28. Ms Loh is the sister of Mr Terence Loh and the cousin of Mr Nelson Loh.

Ms Loh quit as a result of the "recent intense public scrutiny" on the company and is of the view that it is in the firm's best interest for her to step down, Axington said on Tuesday.

Lastly, Chua Siong Kiat, 49, has resigned as lead independent director, chairman of the audit committee and member of the nominating committee and remuneration committee of Axington.

Mr Chua tendered his resignation on Aug 30, which became effective on the same day. According to Axington, Mr Chua left due to "health reasons", and is acting upon medical advice to "reduce his workload and other principal commitments".

The string of resignations announced on Tuesday come shortly after former US ambassador to Singapore, Kirk Wagar, quit as Axington's independent director. Mr Wagar has "urged more transparency in view of the recent revelations and development".

Following the five resignations, Axington is left with just two members on its board, namely independent directors Low Junrui and Roberto Dona.

As the board comprises only independent directors, it is reaching out to its controlling shareholders to seek clarity on, among other things, details of the impending changes in business strategy which was mentioned in the resignation announcements of Ms Shen and Mr Wong.

Last Friday, Axington's board also announced that its extraordinary general meeting that was scheduled for Thursday had been postponed. The company had proposed a name change to NETX, a change of its core business, the acquisition of Vesta Apex Trading, and the issue of new shares as part payment for the acquisition.

Axington shares last traded at S$0.19 on Aug 25. The company requested a voluntary suspension in the trading of its shares on Aug 31, pending the release of announcements.