SGX RegCo weighs in on Axington links to scandal-hit BN Group

Singapore

THE Singapore Exchange's regulatory arm, SGX RegCo, has "engaged" Novus Corporate Finance, the continuing sponsor of Axington, over how it has assessed the "experience, expertise, character and integrity" of its non-independent, non-executive chairman Shen Che.

Ms Shen, also known as Evangeline Shen, and cousins Nelson and Terence Loh - controlling shareholders of Axington via Dorr Global Healthcare - are embroiled in a scandal over doctoring photos of former US president Barack Obama for marketing collateral uses.

Neither of the Lohs is a director of Axington.

"In general, all directors appointed to the board of a Catalist issuer are required to be assessed by the issuer's Nominating Committee and continuing sponsor to be suitable to sit on the issuer's board, taking into account their experience, expertise, character and integrity," SGX RegCo said on Monday night. "Where necessary, appropriate investigations should be undertaken to evaluate suitability in light of recent developments."

According to Axington's appointment of Ms Shen in July, she was formerly an investment banker with Morgan Stanley Asia and senior partner at Jinmao LLP.

Ms Shen and the Loh cousins are co-founders of the Bellagraph Nova Group (BN Group), which recently said it is in talks to take over English football club Newcastle United.

Over the weekend, BN Group admitted to doctoring photos of former US President Barack Obama in its marketing materials. Doubts were also raised over claims that the group has made, some in relation to the takeover bid.

"We expect a response from Novus soon," said SGX RegCo.

On Monday, shares of Axington fell nearly 22 per cent at the start of trading but ended the day at S$0.22, down 2.2 per cent. About 486,000 shares were traded.

Earlier in June, Dorr Global Healthcare made a mandatory unconditional cash offer for all of Axington's shares, which closed on July 13 with Dorr holding a 92.5 per cent stake in Axington. In July, it proposed a S$6 million share placement of 30 million new ordinary shares at 20 cents per share, and a compliance placement of 150,000 new shares at the same price to restore its free float.

Axington, formerly Axcelasia, is currently looking to change its core business to providing medical and consumer wellness services, and investments in medical technology, robotics and artificial intelligence technology. To that end, it is also proposing a second name change to NETX Inc.