Ayondo Seeks to Postpone AGM, Financial Reports Due to COVID-19

Ayondo faces intense scrutiny over its financial situation, business viability, and compliance concerns raised by regulators

Catalist-listed Ayondo said that due to logistics and delays caused by the COVID-19 virus, it is applying with the Singapore bourse to postpone holding its annual general meeting. The troubled firm also seeks to push back the deadline for filing its financial reports.

The company has submitted to the Singapore Exchange Securities Trading Limited (“SGX-ST”) an application for an extension of time till August 17, instead of its original date that was scheduled for June 29.

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On its rationale for the deadline extension, Ayondo said that preparing the statutory audit of the financial statements has been greatly affected after the Singapore government announced a circuit breaker. This included closure of most workplaces, except for essential services and key economic sector and tightening of the restrictions on movements and gatherings of people, it said.

Recent events pertaining to COVID-19 have impacted the company’s employees and directors’ ability to rely on timely information and meet to approve its financial statements and management’s discussion and analysis.

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The request was also made in order to complete the proposed change of its current auditors, and complete its quarterly reports after it has experienced senior staff turnover.

Ayondo’s regulatory filing further reads:

“The financial records of the Company’s current and former overseas subsidiaries, namely, ayondo Holding AG, ayondo GmbH, Social Trading Netzwerk GmbH, ayondo Portfolio Management GmbH, and ayondo Markets Limited (which was acquired by a third party who has taken over the accounting records) are kept by various overseas parties including (i) former employees of the Group, (ii) an outsourced accountants, (iii) an outsourced bookkeeper, and (iv) liquidators.”

Shares of Ayondo were halted and then suspended from trading since January 30, 2019, after it faced intense scrutiny over its financial situation, business viability issues, and concerns raised by regulators over its compliance requirements in the UK. According to SGX’s listing rules, the social trading and brokerage firm had to submit a proposal with a view to resuming trading within 12 months of this suspension date.

Ayondo, which was the first fintech company to IPO on the Singapore Stock Exchange (SGX), faced working capital deficiency from continued losses. According to its filings, the business was hit hard by regulatory changes relating to product intervention imposed by European and UK regulators.

To resolve these issues, Ayondo tried to reduce its liabilities through the sale of its UK unit Ayondo Markets Limited (AML) for £5.7 million to its Netherlands-based white label partner BUX Holdings. The deal was completed in mid-2019 after Singapore’s regulators told Ayondo earlier to put on hold its plan to dispose of AML pending clarity over its financial situation as well as compliance with the FCA in the UK.

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