This view is based on an assessment of its forecast cash flow and an analysis comprising multiple scenarios for possible outcomes
[SINGAPORE] Embattled cord-blood bank Cordlife said that it will be able to continue as a going concern for at least the next year, should its potential suspension take effect.
The company had conducted an assessment of its ability to continue as a going concern for the upcoming 12-month period ending Sep 30, 2026.
“Taking into account the H1 2025 financial results and the cash flow forecasts, barring any unforeseen circumstances, the board is of the view that the company will be able to continue as a going concern for the period under review,” Cordlife said in a bourse filing on Monday (Oct 6), where it provided an update on the assessment.
It added that the assessment had incorporated an analysis comprising multiple scenarios for possible outcomes and tolerance levels “in light of various key risks and uncertainties”.
The company said on Oct 1 that it was weighing its ability to continue as a going concern as it faced a potential suspension. The Ministry of Health on Sep 29 issued Cordlife a notice of intent for a one-year suspension of its cord-blood banking services after operational lapses came to light in a July audit. The company was given 14 days to submit its written representations.
While Cordlife should be able to continue operations for the 12-month period under review should the suspension take effect, the board cautioned that the future beyond that is not certain. “There can be no assurance that the company will not subsequently face challenges to its ability to continue as a going concern.”
The company added: “The board will continue to closely monitor the situation, in consultation with its advisers, and evaluate the company’s financial position, and will update its shareholders if there are any material developments in relation to the above.”
Shares of Cordlife ended Friday flat at S$0.178.
