CMON Limited, which is traded on the Hong Kong Exchange, suspended stock trading on April 1. The suspension was announced on March 26 after it revealed there would be a delay in the release of their 2019 Annual Report.
CMON had seen a steady decline in share price since the first of the year. The day before trading was suspended shares closed at HK$0.074. The stock closed at HK$0.108 on January 2.
The company does not expect to have the Annual Report to shareholders before April 30. CMON said the additional time was needed to provide auditors with information and documentation of a $1.5 million distributor agreement and the rationale behind a significant increase in prepayment balances.
After the suspension, two independent non-executive board directors have resigned. Seow Chow Loong Ian resigned on April 2. Tan Lip-Keat, the chairman of the Audit Committee resigned April 3.
The company stated in financial documents that both directors resigned due to other commitments and confirmed they had no disagreement with the Board.
Chong Pheng is the remaining independent director. Chong is a member of the Audit and Nomination Committee, and serves at the Chair of the Remuneration Committee.
CMON is working to replace the directors as the Hong Kong exchange requires companies to keep three independent non-executive board members with at least one of them having professional qualifications. They require the same of an audit committee. It said the search could delay the audits even more.
Mr. Ng Chern Ann (Chairman)
Mr. David Doust
Mr. Koh Zheng Kai
Mr. Frederick Chua Oon Kian
Independent Non-Executive Director
Mr. Chong Phen