PETALING JAYA: Tiger Synergy Bhd’s board of directors has to address a string of concerns raised by shareholders before embarking on yet another round of fundraising, according to its substantial shareholder, Safari Alliance Sdn Bhd.
Safari Alliance, which has a 10.89% stake in the group, also urged institutional and minority shareholders to attend the coming virtual EGM to demand clarification from the board on a number of recent financial transactions and developments.
On July 19, the substantial shareholder initiated a lawsuit against Tiger Synergy and a number of its board members, asking them to disclose and clarify material information as well as to declare the EGM notice null and void.
“One significant but questionable transaction is where around RM39.3 million was advanced to an alleged contractor for preconstruction costs towards the end of 2019 and recorded as a receivable,” Safari Alliance director Goh Ching Mun said in a statement today.
He pointed out that such payment was not within the represented intended use of funds for the fundraising conducted in 2018.
“Before the company can embark on yet another fundraising exercise, there should be full and frank disclosure as to why this sum was not collected.”
In addition, Goh urged shareholders to demand clarification on the status and updates of development projects announced by Tiger Synergy over the recent years, and financial transactions made in relation to these projects.
“It makes no sense to continuously dilute the value of our shares through fundraising exercises while tangible developments said to be carried out by the company are nowhere in sight,” he said.
Safari Alliance also pointed out that the group had raised RM84 million via new share issues for the financial year ended Dec 31, 2019 with nothing to show from the exercise except for a RM9.3 million loss in fourth-quarter 2019.
“Its 2019 annual report also showed a hidden additional loss of RM10.2 million treated as a prior year ‘error’. History must not repeat itself!”
On July 14, 2021, Tiger Synergy proposed a renounceable rights issue of up to 1.1 billion new shares with up to 1.1 billion free detachable warrants on the basis of three rights shares with three free warrants for every four existing shares held. This exercise is subject to shareholders’ approval at the EGM.