UPDATE: Mission Well calls for QT Vascular to hold EGM to remove CEO and other directors

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On Friday, 19 November 2021, QT Vascular issued clarifications of statements in Mission Well’s announcement.

Mission Well and Tansri Saridju Benui have filed an intention to call an extraordinary general meeting (EGM) of QT Vascular shareholders, with the intention to replace management, including Eitan Konstantino, the CEO and executive director, according to a filing to SGX Tuesday.

Tansri Saridju Benui holds 50,000 shares of QT Vascular and Mission Well holds 228.2 million, or an around 10.2 percent stake, the filing said.

Among the resolutions the two shareholders are seeking votes on are the removal of Konstantino, General Manager of Singapore Operations and Executive Director Momi Momon Brosh, Independent Director Sho Kian Hin and Independent Director Ng Boon Eng, the filing said.

In addition, the resolutions call for appointing Tansri Saridju Benui as an executive director and Christian Kwok-Leun Yau Heilesen as a non-independent non-executive director as well as appointing Leung Yu Tung Stanley, Chay Yiowmin and Zhou Jia Lin as independent non-executive directors.

Christian Kwok-Leun Yau Heilesen is the director of Mission Well.

Mission Well cited multiple concerns over the current board and management, including net losses over the October-to-June period when it posted zero revenue, and losses for 2020 and for 2021.

In addition, the group’s auditors had raised going concern assumptions over QT Vascular’s ability to operate, realize assets and pay liabilities, the filing said.

Mission Well’s letter to shareholders also pointed to QT Vascular’s proposed private placement in May, for the issue of 4.06 billion new ordinary shares at S$0.0018 a share to raise gross proceeds of S$7.3 million to acquire 60 percent of Asia Dental Group for around S$7.7 million.

The letter noted the weighted average price of QT Vascular’s shares on 24 May was S$0.006, indicating the proposed placement was priced at an around 70 percent discount to the market price.

Additionally, a preliminary draft valuation of Asia Dental Group said the 60 percent stake’s indicative value ranged between S$5.5 million to S$7.2 million as of end-2020, suggesting the purchase consideration would mark a 6.3 percent to 39.1 percent premium to the range, the letter said.

In a separate filing to SGX Tuesday, Mission Well said it acquired around 151.98 million QT Vascular shares in the market on 11 November for S$1.25 million, taking its stake to 10.19 percent from 3.4 percent previously.

Mission Well acquired an additional around 25.98 million shares in the market for S$279,981 on 12 November, increasing its stake to 11.35 percent, a separate filing said.

Read QT Vascular’s filing to SGX and Mission Well’s call for an EGM.