NutryFarm requests trading suspension pending review of ongoing concerns

NUTRYFARM International requested for a trading suspension on the Singapore Exchange (SGX) before the market opened on Monday (Apr 11), pending a review of ongoing concerns.

Shares of the mainboard-listed durian and health foods distributor last closed flat at S$0.085 on Apr 4.

It requested for 2 trading halts last week.

The first one on Apr 5 was over an announcement that its subsidiary LottVision and its corporate secretarial services provider Lee & Lee had been issued letters of demand from its creditor Corpbond IV for NutryFarm to pay an outstanding sum of S$3.9 million and US$271,849 that were due Mar 31 this year.

This money is part of the principal amount of a loan, as well as the interests accrued, that AZT : AZT 0%took from Corpbond IV and Furong Investments on Oct 30, 2017.

The letter of demand to LottVision, which was issued on Apr 1, stated that Corpbond IV will take legal action against the company if it fails to pay the money it owes within 10 days from the date when the letter was issued.

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As for the letter to Lee & Lee, it stated that CorpBond IV will declare the total debt amount to be immediately due if the outstanding amount is not paid within 5 days from when the letter was issued.

Nutryfarm had said in the bourse filing then that it will be seeking legal advice on the issue and will take appropriate action.

After requesting to lift the trading halt after the market closed on Apr 5, the company requested for another halt the next day, pending confirmation on ongoing concerns from SGX queries.

NutryFarm was recently questioned over the appointment of its executive chairman Wu Yongqiang, who took on the role since Mar 8.

Wu has been a substantial shareholder of NutryFarm since Jun 30, 2021, and he owns a 13.97 per cent stake in the durian and health foods distributor as at Mar 9, 2022.

SGX queried NutryFarm over the suitability of Wu as a board director given his many ongoing lawsuits in China.

NutryFarm responded on Mar 14 that it is satisfied with Wu's character and integrity for him to be appointed as the company's new executive chairman, even though he is involved in 18 civil suits in China as they have assessed that these cases are commercial in nature.

It added that the company's nominating committee has reviewed each of the civil suits, along with an opinion report from Guangdong Guanghe law firm, and has assessed that they do not involve fraud, dishonesty, misrepresentation, misconduct or mismanagement on the part of Wu.

NutryFarm also said there is no potential conflict of interest between its business and KTL Global, a fresh vegetable and fruits distributor of which Wu is serving on its board as a non-executive chairman.

In another response to further queries from SGX on the potential conflict of interest that could arise given Wu's position in both companies, NutryFarm said in a bourse filing on Mar 25 that it intends to appoint more independent directors and retire existing ones.

It added that any transactions with KTL Global and its subsidiary Tianci Agritech will also be approved by the board and reviewed by the audit committee. Wu will abstain from voting on any matters relating to KTL Global and Tianci Agritech, noted NutryFarm.

READ MORE:

• Creditors of KTL, NutryFarm may not share boards' faith in chairman Wu Yongqiang
• Nutryfarm satisfied with new executive chairman despite lawsuits
• Nutryfarm appoints new executive chairman
• NutryFarm exec director resigns; new non-exec director appointed
• Nutryfarm didn't give loan updates when SGX queried because it was 'premature', says board