Social media company YuuZoo to shut down Singapore operations, lay off staff
Social media company YuuZoo Networks Group (YNG) Corp, formerly known as YuuZoo Corp, is shutting down all its Singapore-based subsidiaries and terminating all Singapore-based employees.
The development is a "direct consequence" of its trading suspension, the mainboard-listed company said in a regulatory filing submitted today. The group said it was unable to pay local salaries, including that of its Singapore chief executive officer, as it was unable to access cash funds seized by the Inland Revenue Authority of Singapore (Iras), which were returned via a cheque some months later after it found no taxes were owing.
Meanwhile, YuuZoo's account was closed by its bank, which subsequently turned down its request to open a new account, which YuuZoo said prevented it from accessing the returned funds.
YuuZoo added that other Singapore-based banks also rejected its request to open an account, and it has been unable to raise new funds.
The social media firm added it has written to the Singapore Exchange to request that its share trading suspension be lifted to raise new funds that have been committed, and allow shareholders to make trading decisions in the company. Meanwhile, it will continue its operations from other offices around the world.
YuuZoo's shares were first suspended in March 2018 after then-auditor RT LLP failed to reply to two questions posed by the SGX. The company added that the SGX had also refused to accept its response, and asked the Commercial Affairs Department (CAD) to investigate the company.
"The CAD investigation, which soon has been going on for a full year, has not revealed any wrongdoing by the company. This is as expected, as the company since the beginning of the investigation has shown it has not committed any breach of the rules SGX asked CAD to investigate," the statement added.
Meanwhile, Chief executive Mohandas has also tendered his. Mohandas, who was named CEO in April 2018 after more than a year, is the seventh senior exit in a year. However he will continue to serve on the board, the company disclosed.
