Sam Chong Keen
WITH THE trading suspension of Sino-Environment shares in its fifth month now, the company announced last night a piece of news that spells hope for long-suffering shareholders.
Once its stock traded above $3 (in 2007) but last closed at 13.5 cents (in Sept 09), Sino-Environment said it has appointed Sam Chong Keen as an Executive Director and CEO for a two-year term with immediate effect.
Given its financial troubles that led to its stock suspension, the company is paying Mr Sam $1 a year in salary.
The sad story of an S-chip.
His renumeration is completely loaded on his performance and the company’s turnaround.
He will be allotted and issued – in four tranches - 4% (or 14,122,174 new shares) of the enlarged total issued and paid-up share capital of approximately 354 million shares.
To be issued no earlier than Feb 2011, the fourth and last tranche will be allotted and issued only when the following performance indicators are achieved:
- Successful implementation of any restructuring exercise with regard to the S$149 million convertible bonds due 2013;
- Sino-Environment returns to profitability, with the Group reporting audited net profits after tax for the two combined financial years under Mr Sam’s watch, ie December 31, 2010 (FY2010) and FY2011; and
- The resumption of the trading of Sino-Environment's shares on the SGX-ST for at least 20 consecutive trading days.
It would appear that the first three tranches of shares are not worth much, if anything, to Mr Sam unless he is able to go on to achieve the fourth tranche – which is conditional, among other things, on the stock resuming trading.
In the press release of Sino-Environment, he said: “When I succeed in turning around the Group, it will be a win-win for all stakeholders. If the Group becomes insolvent (I hope not) for reasons beyond my control, I would gain nothing, along with all shareholders and stakeholders.”
Mr Sam’s background:
In the past four years, he had spent two years each rebuilding Xpress Holdings Ltd from February 2006 to February 2008 and restructuring Jade Technologies Holdings Ltd from April 2008 to January 2010, following which he took on a non-executive position as Senior Advisor, President’s Office.
He remains as a non-Executive Director on the Boards of both Xpress and Jade.