SGX queries LifeBrandz on business development, board changes

LIFEBRANDZ on Friday said that talks with potential partners to establish new restaurant outlets in Singapore and studies on other potential food-related opportunities will not be "materially affected", even as its executive chairman and chief executive, and an independent director have resigned.

This is because Ang Puak Huen, a director of LB F&B Sdn Bhd, a wholly-owned subsidiary of the group, has been leading the discussions and studies, LifeBrandz said. Ms Ang was promoted to executive director and chief operating officer last month.

The group, which has various businesses in fintech, travel and food and beverage (F&B), added that it shared the strategic plans with the new executive chairman and chief executive, Lam Siew Kee, prior to his joining the company on March 11.

The group was responding to various queries from the Singapore Exchange (SGX), following the resignations of executive chairman and chief executive Saito Hiroyuki, and independent director Naoki Watanabe.

LifeBrandz also disclosed that Ms Ang is also overseeing Mulligan's Irish Pub in Pattaya, Thailand, which is the group's only active operation now.

SGX also queried LifeBrandz on how it assessed Mr Lam's fit for the role, given his lack of prior experience as a listed company director and the company's business, financial and board-related challenges.

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LifeBrandz replied that it took into account Mr Lam's more than 18 years of corporate finance experience in advising both public and private companies, and familiarity with SGX's listing rules and the duties and requirements of a listed company director.

Mr Lam has had stints with Straits Advisors Group, UBS, PwC Corporate Finance, Overseas Union Bank and Vickers Ballas & Co, the group noted. He also runs his own company, Tubo Capital, which provides management consultancy services to entrepreneurs and business owners.

"All of the abovementioned experience is much needed for the group at this stage as it is directly relevant to the setting of the strategic direction and plans, designing future growth plans, spearheading fundraising activities, as well as leading and guiding the management team to execute the business plans and corporate actions," LifeBrandz said.

Separately, LifeBrandz had earlier this week reported a S$1.73 million net profit for the half year ended Jan 31, reversing from a S$921,000 net loss a year ago.

Revenue fell 99 per cent on the year to S$19,000 due to the closure of Hashida Sushi in Singapore last April. However, other operating income rose to S$2.55 million from S$10,000 a year ago. This was mainly due to the waiver of loans from shareholders, and the recovery of certain costs from the Hashida Sushi's closure.

Shares of LifeBrandz last traded at S$0.01 before it called for a trading halt before market open on March 11.