Kimly drops 2 convicted consultants after stakeholders raise concerns

Tay Peck Gek

Published Sun, Mar 13, 2022 · 04:08 PM

KIMLY 1D0 : 1D0 0% Limited and its convicted consultants have mutually decided not to carry on with the recent engagement of the duo, following feedback and concerns from its stakeholders, the Catalist-listed operator of coffeeshops said.

In its regulatory statement it furnished on Saturday (Mar 12), Kimly said: "The board is grateful for and takes these feedback and concerns seriously, and will further evaluate and consider the matter together with its professional advisers, engage appropriately with stakeholders as well as take additional guidance from its sponsor and regulators."

Kimly had in its statement furnished on Mar 2 announced the engagement of former executive chairman Lim Hee Liat and former executive director Chia Cher Khiang as independent consultants, shortly after the duo were convicted of and fined in mid-February for breaching the Securities and Futures Act.

Kimly noted that Lim and Chia's shareholdings in the company amounted to 41.3 per cent, and that their interests are "aligned" with other shareholders in ensuring the group continues to perform well operationally and financially.

It stated that its shares traded 54 per cent higher at S$0.385 on Mar 11 than its initial public offering of S$0.25 in 2017. It recorded interim, special and final year dividends totalling S$0.0644 per share or 25.8 per cent of the investment as at the flotation.

Lim and Chia were convicted for not notifying the Singapore Exchange that Kimly's 2018 acquisition of drinks company Asian Story Corporation (ASC) was an interested person transaction. They were fined S$150,000 and S$100,000 respectively. Also, Lim was charged for failing to disclose that ASC was a company which was partially beneficially owned by him.