Kimly's chairman, executive director arrested, later released on bail

Singapore

KIMLY'S executive chairman and executive director were arrested by the Commercial Affairs Department (CAD) on Tuesday for allegedly flouting the Securities and Futures Act and later released on bail.

In a filing to the Singapore Exchange on Tuesday night, the Catalist-listed coffeeshop operator said: "(They were) ... arrested for having been concerned, or reasonably suspected of being involved in, an offence under Section 199 of the Securities and Futures Act."

Executive chairman Lim Hee Liat and executive director Chia Cher Khiang "continue to assist in investigations, and no formal charges have been made against them by the authorities", Kimly went on to say, adding that it would continue to update shareholders as and when there are material developments.

It had been reported previously that Singapore's white collar crime busters were probing Kimly's initial public offering (IPO) and its acquisition of drinks maker Asian Story Corp (ASC).

The Monetary Authority of Singapore and CAD had, on Nov 22, requested certain documents and equipment from Kimly and ASC, including documents relating to Kimly's IPO and its acquisition of ASC as well as IT equipment used by its executive chairman and executive director.

Kimly has since rescinded the deal to purchase ASC, which it bought from Wang Chia Ye for S$16 million in July. Mr Wang was a former employee of Singapore drink company Pokka. Meanwhile, Pokka International is the distributor of ASC's products, and Pokka Corp a manufacturer of some of ASC's products.

Kimly decided to axe the deal after Pokka Corp gave a six-month notice on Nov 22 to terminate its manufacturing agreement with ASC.

Shares in Kimly closed at 25 Singapore cents on Tuesday, unchanged.