As at 3.18pm, Scanwolf's (fundamental: 0.55; valuation: 0.3) share price dipped as much as 1.1 sen to 54 sen, with some 5.1 million units having changed hands.
The plastic extrusion manufacturer’s stock has been on a downward trend since May 22, after its three substantial shareholders Abdul Hamid bin Abdul Shukor, Cedric Wong King Ti and Yii Long Ging took the group's directors to court to stop the board from appointing new directors, before the extraordinary general meeting (EGM) scheduled to be held on June 17.
The group saw its market capitalisation of RM9.98 million wiped out between May 22 when the stock closed at 76.5 sen, and last Friday when the closing price stood at 65 sen.
The trio had called for an EGM after preliminary findings of insufficient measures, severe discrepancies and possible irregularities in the implementation of its development projects. Scanwolf had appointed PKF Covenant Sdn Bhd to probe into the group.
The tussle was aggravated when Scanwolf suspended the executive power of its director Datuk Tan Sin Keat and financial controller Ng Chee Wai, pending a full investigation into discrepancies found in documents pertaining to transactions conducted by its wholly-owned subsidiary, Scanwolf Plastic Industries Sdn Bhd (SPI), on June 2.
The group said the discrepancies were found in the supporting documents — such as invoices and delivery orders — that were provided by SPI to the bank for the purpose of drawdown of SPI’s banking facilities.
The next day, its independent and non-executive director Ong Sing Guan resigned, citing “management disagreement” and not wanting to be drawn in the board tussle, as reasons for his resignation.
SCNWOLF (7239) - Boardroom tussle continues to spook Scanwolf investors
http://www.theedgemarkets.com
