KUALA LUMPUR (April 19): A group of Artroniq Bhd (formerly Plastrade Technology Bhd) shareholders wants to have the company's entire board of directors removed, and appoint new ones in their stead.
In a bourse filing, Artroniq said four shareholders – Tee Yen Chong, Yeoh Guan Fook, Lee Pei Mei and Chew Hun Seng – who claimed they collectively control at least a 10% stake in the company, want to remove non-executive chairman Steven Wong, executive director Choy Eng Lun, and independent and non-executive directors Tan Tian Wooi and Lam Kwan Siew from the group’s board via an extraordinary general meeting (EGM).
Artroniq said it received the notice of intention from the four shareholders on April 16 to remove the directors and to call for this EGM, which is planned to be held virtually on May 17 at 10am.
They are also calling for any directors appointed between now and the EGM to be removed as well, said Artroniq.
At the same time, the shareholders have put forth resolutions to appoint Rahimi Ramli, Tan Teck Khong, Chin Yew Thong and Andrea Huong as the company's new directors.
"The company is seeking legal advice on the above and further announcement will be made on the development thereof accordingly, if any," Artroniq's bourse filing read.
Artroniq makes compounds of power cables and distributes ICT products. It has largely been loss-making for four consecutive years since the financial year ended Dec 31, 2017 (FY17).
For FY20, the group widened its losses to RM11.83 million, from RM2.23 million the year before, even as revenue climbed 43.3% to RM169.82 million from RM118.5 million.
As at July 21, 2020, Artroniq’s largest shareholders included Heng Kear Huat with direct and indirect stakes of 22.84% and 4.34% respectively, followed by Pua Kong Hoi (21.19%) and Tee Han Seang (an 8.3% indirect stake).
Heng emerged as the largest shareholder of Plastrade in January 2020. The company changed its name to Artroniq last November.
Shares in Atroniq closed 6% or three sen lower at 47 sen today, giving it a market capitalisation of RM135.80 million. The counter, which has been traded below 20 sen for much of the last few years, saw its share price more than doubling from 50.5 sen at end-2020 to its all-time high of RM1.05 on March 5, which earned it an unusual market activity query from the bourse regulator.
In response to the UMA, Artroniq said it had been implementing changes such as monetising the assets of its manufacturing business, which had ceased in the third quarter ended Sept 30, 2020 (3QFY20), as well as other non-core assets. It was also exploring options to identify suitable businesses and strategic acquisitions to expand its business in the distribution of information and communication technology (ICT) products and related activities.
The stock price later trended downwards and sank to as low as 37.5 sen on March 31, before rebounding.