The HK$38 million net proceeds that e-commerce solutions provider Codebank raised from its Growth Enterprise Market listing in December is either depleted or missing, according to the independent financial adviser to shareholders on a hostile share purchase offer.
A shareholders' document released yesterday shows Codebank's auditor, PricewaterhouseCoopers, on Wednesday changed its opinion on Codebank's financial statements last year, from an unqualified opinion given on March 25 to a qualified one with an adverse opinion.
The auditor said it was 'led to believe' that HK$10 million of listing proceeds were collected in February but this was later found to be untrue, adding Codebank should have made a HK$10 million provision.
'This would have a consequential significant effect on [its] loss last year and its net assets at the end of last year.'
The news comes two months after Codebank revealed that former chairman Herman Yu Hang-chung claimed the company had lent HK$10 million to a third party without the board's approval, before resigning on April 30.
It also follows Mr Yu's revelation to management in mid-April that HK$10 million of listing proceeds due from investors were still not collected by mid-April, contrary to bank statements in early March indicating it had been received.
In a letter to Codebank's shareholders, independent financial adviser Centurion Corporate Finance said: 'We are given to understand by the board that the entire HK$38 million raised is either exhausted or . . . missing.'