Singapore-style coffee shop operator Kimly said late on Thursday that Singapore’s Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) had requested documents and equipment related to its IPO and its acquisition, now cancelled, of Asian Story Corp. (ASC).
“The requests are made pursuant to the provisions of the Criminal Procedure Code in connection with an investigation into a possible offence under the Securities and Future Act,” Kimly said in the filing to SGX late on Thursday. It said the letters from authorities were received last week.
“The authorities have not disclosed to the company any further details of its investigation. The company will cooperate fully with the authorities on the investigation,” Kimly said.
Kimly was requested to produce documents related to the company’s IPO, its acquisition of ASC, IT equipment used by Executive Chairman Lim Hee Liat, Executive Director Chia Cher Khiang and a former non-executive director, Ong Eng Sing, as well as corporate secretarial records from the beginning of 2016, it said.
Documents related to the ASC acquisition were also requested, it said.
Both Lim and Chia told the board that they received similar requests from Singapore authorities in connection with a potential offence of the Securities and Futures Act section 199, which relates to making false or misleading statements, Kimly said. It added that both Lim and Chia have been interviewed and have surrendered their travel documents to CAD.
Kimly said that Lim and Chia would remain in their roles for the time being.
“As the investigation is ongoing and the company is not aware that any formal charges have been made against the executive directors, the other members of the board are of the view that the executive directors should continue to discharge their responsibilities and duties in the operation of the group’s businesses to ensure business continuity,” Kimly said.
But it added that Wong Kok Yoong, the current chief financial officer, would be appointed finance director with immediate effect.
Kimly also said it would engage “relevant professionals” to assist with reviewing and enhancing its internal controls and governance.
“The board wishes to assure shareholders that the group continues to operate in its ordinary course its extensive chain of 67 food outlets and 129 food stalls under various brands island wide,” it added.