Australian-founded tech group closes doors as it can’t pay staff


Mr Creevey and Mr Cramer-Roberts severed ties with Yuuzoo years before its 2014 float. Mr Zilliacus resigned as executive chairman in 2018 during the police investigation. Singapore authorities have made no allegation of wrongdoing against any of the three founders.

Loading

YNG’s shares, which were once worth 75 cents, have been suspended from trading since March 2018. They last traded at 3.8 cents. Yuuzoo changed its name to Yuzoo Networks Group Corporation (also known as YNG Corporation) in 2018.

YNG said it had experienced ongoing issues with the administration of its bank accounts after the money in the Yuuzoo Corporation bank account was seized by Singapore’s tax authority in 2018.

The Inland Revenue Authority Of Singapore (IRAS) has since returned the money by cheque to YNG, but its bank has closed the account and refuses to open a new account for the company.

“As a result of the closure of its bank account and IRAS’ refusal to return the money to another company account, the company is still unable to access any of the money,” YNG said.

“The company has therefore been unable to pay local salaries, including that of its Singaporean CEO, who as a result has been forced to resign.”

The company has been unable to pay local salaries, including that of its Singaporean CEO, who as a result has been forced to resign.

Yuuzoo Networks Group Corporation

YNG added its share suspension, the police investigation and its bank account issues had had a “deeply negative impact” on the company.

“It has resulted in all Singapore-based banks that the company has contacted refusing to open a bank account for the company and has made it impossible for the company to raise new funds,” the group said.

Despite its bank account issues, YNG secured a $SG30 million three-year funding agreement with Swiss-based Asia Financial Group through the issue of 65 million warrants each carrying the right to one share in the company. The agreement is supported by Mobile Future Works, a company associated with Mr Zilliacus. The raising is dependent on SGX approval.

Loading

Singapore’s police force launched an investigation into Yuuzoo for possible breaches of the law in 2018 following complaints from shareholders, Yuuzoo’s auditors and the Singapore Securities Exchange. Part of the police investigation relates to Yuuzoo’s disclosures to the market about its deals with its subsidiaries, associates and its franchise arrangements.

YNG said the police investigation had not revealed any wrongdoing by the company.

“Our commitment to Singapore remains strong,” a YNG spokesman said.

“The continuation of the operations in Singapore has however been made impossible by the seizure of all funds, the refusal by IRAS to return them in a manner that would enable the company to make use of them, the continuation of the SGX-imposed share suspension and the SGX- requested [police] CAD investigation,” he added.

The company will continue its operations from its other offices in China, Nigeria and Thailand.

It has also requested the SGX allow its shares to resume trading for the benefit of shareholders.

Sarah Danckert is a business reporter.

Most Viewed in Business

Loading



Business

Related posts

Make a comment