SINGAPORE (Mar 18): IPCO International is asking the Singapore Exchange for an extension to report its financial results for the 3Q ended Jan after its newly-appointed directors cast doubts over the validity of certain transactions.
"The new directors are in close discussions with the newly appointed auditors of the company, Messrs Baker Tilly regarding the past treatment and classification of these transactions,” says IPCO in a filing to the SGX on Saturday which was its 3Q filing deadline.
IPCO is asking for the deadline to be extended to April 14.
“Depending on their findings, adjustments and/or disclosures may have to be made to shareholders in public announcements and in the third quarter financial results,” the company adds.
See also: IPCO says auditors unable to verify dubious transactions as they had occurred recently
Last Wednesday, IPCO announced the "voluntarily resignation" of interim CEO Goh Hin Calm, who is facing charges for his role in the October 2013 penny stock saga.
See: John Soh's 'treasurer' Goh quits as interim CEO of IPCO
Goh, who is facing six charges, has been described by prosecutors as the “treasurer” of alleged mastermind John Soh, who has been held in remand since November 2016, and Quah Su Ling, Soh’s partner and former CEO of IPCO.
Goh is out on bail for $750,000 while Quah is out on bail for $4 million.
The trial of the three have yet to be fixed although October has been raised as a possibility according to court hearings last month.
Goh's resignation comes amid significant changes to IPCO's board. This comes after 33-year-old Australian James Moffatt Blythman, paid $1.58 million to subscribe for 880 million new shares at 0.18 cent each, making him the company’s largest shareholder with that stake of 14.24%.
With the more than 10% stake, Blythman called for an EGM that was held on Jan 19 to oust long-time executive director cum chief financial officer Carlson Clark Smith.
See: IPCO’s board receives written EGM requisition from shareholder Blythman
See: New IPCO shareholder Blythman calls for EGM to oust leadership
Smith, who has been with the company since 2002, was voted out at the EGM. Two new directors, Ng Fook San and Joseph Chen, were also appointed on the same day.
Smith was then sacked as the CFO on Feb 27. Smith was accused by the new board of neglecting IPCO’s overseas businesses. Shareholders were not informed that his passport was impounded during the penny stock saga investigations.
See: IPCO sacks CFO Carlson Smith on grounds of misconduct
On March 1, Blythman took over the CFO job himself. Despite being the largest shareholder, he has yet to become a director in the company.
For the 2Q ended Oct 31 2017, IPCO reported a loss of $508,000, down from earnings of $2.3 million in the year earlier quarter.
Revenue was down 17% year on year to $11.6 million.
As of Oct 31 2017, the company’s net asset value stood at two cents – more than ten times higher than what Blythman paid for his controlling stake.
