YuuZoo: A company like no other

SINCE July 5, 2017, I have written several articles relating to corporate governance, disclosure and accounting issues at YuuZoo Corporation. Among the numerous concerns I have raised are highly positive announcements about business deals and other developments with little supporting information, only for them to fall through, be written off or never to be heard of again.

For example, when YuuZoo announced the deal to buy Relativity Holdings LLC on Oct 30, 2016, it said that the transaction has a "tremendous fit where 1 plus 1 does truly equal 10". The math was wrong as the deal was not only cancelled, but an amount of US$2.5 million already paid has not yet been recovered.

Another example was the deal announced on Feb 16, 2015 to buy IAH. It said then that it was issuing 50 million shares at an issue price of S$1 each, and based on the 680 million issued shares at the time, YuuZoo was valued at S$680 million - even though the last traded price then was 36 cents per share, which implied a market capitalisation of about S$245 million. Such a valuation method certainly did not come from Warren Buffett. In fact, the deal was value destroying as YuuZoo wrote off S$7.49 million on its IAH investment and receivables in its 2016 financial statements.