If the halt takes effect, the cord-blood bank will continue to incur fixed fees and other operating expenses while business activities cease
[SINGAPORE] Cordlife is assessing the risks and uncertainties that could impact its ability to continue as a going concern as it faces a potential one-year suspension, it said in a bourse filing on Wednesday (Oct 1).
The Ministry of Health on Monday served Cordlife a notice of intent for a one-year suspension of its cord-blood banking services, after an audit in July uncovered lapses in its operations. The notice requires Cordlife to stop collecting, testing, processing and storing new cord-blood units. The company has 14 days to submit representations.
The private cord-blood bank noted that it is unable to determine the impact of the developments on its performance for the financial year ending Dec 31, 2025.
Should the suspension take effect, the company noted that it would continue to incur fixed fees and other operating expenses, while business activities cease.
Operational and financial pressures, in addition to cash outflows incurred over customer refunds, may hurt its liquidity, the company said.
Moreover, its ability to continue receiving payments from unaffected customers under deferred payment plans for the next 12 months is subject to uncertainty, and any delays, shortfalls or defaults in payment could affect its cash position.
Cordlife’s assessment of its ability to continue as a going concern is expected to be completed by the end of the week, and the company said it will provide an update accordingly.
Shares of Cordlife ended flat at S$0.215 on Sep 26, before the company called for a trading halt on Sep 29; trading of its shares will resume on Oct 2.
