MeTech JV files second lawsuit against ex-director Deng Yiming

FIRST, it was over some missing diamonds. Now, it’s because of overpriced machines used for growing diamonds.

Asian Eco Technology — formerly a joint venture (JV) between MeTech International : V3M 0%’s subsidiary Asian Green Tech and X Diamond Capital (XDC) — is taking legal action against their former director Deng Yiming in the High Court once again.

In a bourse filing on Tuesday (Mar 21), Metech International said it has reason to believe that XDC sold five of those machines, known as microwave plasma chemical vapour deposition machines, to Asian Eco Technology at a price higher than their fair market value on Oct 19, 2021.

Deng was a director at XDC at the time of the sale, and is still in the same position.

The Catalist-listed company said in a Mar 13 bourse filing that it filed a lawsuit against Deng over missing diamond seeds and loose diamonds.

The pieces were last in Deng’s possession, and he had, to date, not satisfactorily addressed issues relating to them, Metech said in the previous bourse filing. A police report had also been filed over the diamonds.

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Metech fully assumed control of Asian Eco Technology — initially formed as a JV to carry out the business of manufacturing and distribution of lab-grown diamonds — since Jan 17 this year after Asian Green Tech terminated the JV agreement on grounds that XDC had breached its terms.

Deng was also removed as director of Asian Eco Technology on the same day.

Metech shares closed flat at S$0.071 on Tuesday.