It will continue to expand its outreach initiatives in order to maintain a strong sales pipeline

 

[SINGAPORE] Cordlife said that the full resumption of its Singapore operations is an &ldquo encouraging step&rdquo in restoring client confidence and regaining operational momentum, even though collection rates have not recovered to average levels from before a storage lapse in December 2023.

 

The cord blood bank resumed operations earlier this year after the Ministry of Health (MOH) renewed its licences for cord blood banking and human tissue banking services with effect from Jan 14. The ministry had suspended it from carrying out operations after uncovering lapses in the storage of its cord-blood tanks.

 

In a Friday (Jun 6) business update, the embattled private cord blood bank said that it is continuing to engage customers affected by the incident.

 

As at May 30, 2025, 56 per cent of affected customers have accepted Cordlife&rsquo s offers to refund annual fees they paid from the start of the temperature lapse, as well as its offers to waive all subsequent fees for active customers whose children&rsquo s cord blood units (CBU) are stored in the damaged, high-risk tanks, and to continue storing the CBU of affected customer&rsquo s children until their child turns 21.

 

It added that it has received correspondence from clients, assessing the losses resulting from alleged breaches of contract, negligence and misrepresentation, and that it is &ldquo actively monitoring&rdquo these matters in consultation with legal advisers and taking steps at appropriate junctures.

 

To return to pre-incident levels of performance, Cordlife said, it will continue to expand its outreach initiatives in order to maintain a strong sales pipeline.

 

It sank into the red with a S$6.3 million net loss for its second half ended Dec 31, 2024, reversing from a S$1.3 million net profit in the previous corresponding period, as a result of the fallout from the lapses.

 

Loss per share for the half-year stood at S$0.0247, from earnings per share of S$0.0051 previously. Its revenue plunged 32 per cent to S$18.7 million, from S$27.4 million, due to the suspension of its Singapore operations until Sep 14, 2024, after the lapses were discovered.

 

In May this year, the group received a voluntary conditional cash partial offer from Medeze Treasury, a wholly owned subsidiary of Thai-listed stem cell company Medeze Group. The offer was for a 10 per cent stake in the group as Medeze is seeking to explore business opportunities with Cordlife.

 

The group added that it has been taking &ldquo active steps&rdquo to raise public awareness on the importance of cord blood banking and its role in safeguarding future health outcomes by ramping up marketing efforts.

 

These measures include participating in baby fairs and engaging with the medical community to strengthen its ecosystem of doctors and hospitals.

 

The group said it has strengthened and renewed relationships with the medical community in Singapore by engaging stakeholders in the community to inform them of its rectification efforts and improved procedures.

 

It added that it is working closely with the Association for the Advancement of Blood and Biotherapies and the Foundation for the Accreditation of Cellular Therapy to restore its accreditations for Singapore.

Thai-listed Medeze Group has offered to buy a 10% stake in private cord-blood bank

 

[SINGAPORE] Cordlife : P8A 0% has appointed Novus Corporate Finance as the independent financial adviser for a voluntary conditional cash partial offer it has received from a Thai company, said the private cord-blood bank on Thursday (May 29) in a bourse filing.

 

Medeze Treasury, a wholly owned subsidiary of Thai-listed stem cell company Medeze Group, had offered to buy a 10 per cent stake in Cordlife, or about 25.6 million shares, at S$0.25 apiece.

 

This reflects a premium of around 61.3 per cent over Cordlife&rsquo s last traded price before the offer announcement of S$0.155 on May 9, and is also higher than its 12-month volume-weighted average price. 

 

This is Medeze&rsquo s first step into the Singapore market, as the company seeks to explore business opportunities with Cordlife, which has been embroiled in an investigation by the Ministry of Health after the company was found to have mishandled stored cord-blood units.

 

Medeze Treasury said the deal offers long-term opportunities for both companies, including the promotion of services together for market expansion, products and services development, and operational synergies.

 

Earlier in March, Cordlife sunk into the red with a net loss of S$6.3 million for its second half ended Dec 31, 2024, compared with a net profit of S$1.3 million in the previous corresponding period. This was mainly due to the fallout from lapses discovered in the storage of the company&rsquo s cord-blood units two years ago.

The stem-cell company is seeking to acquire about 25.6 million shares at S$0.25 apiece

 

[SINGAPORE] Shares of Cordlife surged by over 48 per cent on Thursday (May 15), after the company lifted the trading halt that was put in place on Tuesday.

 

This came after a voluntary conditional cash partial offer from Medeze Treasury &ndash a wholly owned subsidiary of Thai-listed stem cell company Medeze Group &ndash was made for a 10 per cent stake in Cordlife.

 

The private cord-blood bank requested to lift its trading halt at 10.34 am on Thursday. It took effect at 11.15 am, and by 11.24 am, its share price had risen by S$0.065 to S$0.22, from S$0.155.

 

As at 1.54 pm, Cordlife&rsquo s shares had risen 48.4 per cent or S$0.075 to S$0.23. At 2.06 pm, it fell slightly to S$0.225, up 45.2 per cent or S$0.07.

 

Medeze Treasury is seeking to acquire about 25.6 million shares at an offer price of S$0.25 apiece. As at Tuesday, the Medeze subsidiary held nearly 1.7 million shares, which is close to 0.7 per cent of the voting rights in Cordlife.

 

The move by Medeze is its first step into the Singapore market, as the company seeks to explore business opportunities with Cordlife.

 

Assuming that the offer becomes unconditional and there are no changes to the number of shares up for offer, the resultant direct shareholding of Medeze Treasury in Cordlife shall be around 10.7 per cent of the shares (excluding treasury shares).

 

In March, Cordlife sank into the red with a net loss of S$6.3 million in its second half ended Dec 31, 2024, from a net profit of S$1.3 million in the previous corresponding period. This was mainly due to the fallout from lapses discovered in the storage of the company&rsquo s cord-blood units two years ago.

The stem cell company is seeking 25.6 million shares at S$0.25 apiece hopes to explore opportunities with Singapore firm

 

[SINGAPORE] Private cord-blood bank Cordlife Group : P8A 0% announced on Tuesday (May 13) that it has received a voluntary conditional cash partial offer for a 10 per cent stake in the company from Medeze Treasury, a wholly owned subsidiary of Medeze Group, a Thai-listed stem cell company.

 

This is Medeze&rsquo s first step into the Singapore market, as the company seeks to explore business opportunities with Cordlife.

 

Medeze Treasury is seeking to acquire about 25.6 million shares at an offer price of S$0.25 per share. This reflects a premium of around 61.3 per cent over the last traded price of S$0.155 on Friday, and also the 12-month volume-weighted average price. 

 

Medeze Treasury said the deal offers long-term opportunities for both companies, including the promotion of services together for market expansion, products and services development, and operational synergies.

 

Medeze Group could provide services such as the analysis and storage of the natural killer cell &ndash known for its ability to kill cancer cells &ndash to Cordlife&rsquo s customers. Cordlife could offer its chromosomal and genetic analysis and screening services to Medeze Group&rsquo s customers.

 

Maybank Securities analyst Jarick Seet said the deal &ldquo offers a chance for shareholders to liquidate some stake at a price much higher than the market&rdquo .

 

&ldquo I think it&rsquo s the best option the shareholders have now, if they are looking for some liquidity,&rdquo he said.

 

Medeze Treasury, the offer vehicle, is a Singapore-registered company. Its directors are Sharon Lim and Veerapol Khemarangsan, who is also the chief executive officer and co-founder of the parent group.

 

For financial year 2024, the Medeze Group recorded revenue of 874.3 million baht (S$34.1 million) and net profit of 338.7 million baht, growing 23.6 per cent and 41.4 per cent year on year, respectively.

 

The group was listed on Thailand&rsquo s stock exchange in 2024. It has a market capitalisation of about S$305.6 million as at May 13. It is engaged in the business of analysing, sorting, culturing and storing stem cells and testing the potential of immune cells.

 

Earlier in March, Cordlife sunk into the red with a net loss of S$6.3 million for its second half ended Dec 31, 2024, compared with a net profit of S$1.3 million in the previous corresponding period. This was mainly due to the fallout from lapses discovered in the storage of the company&rsquo s cord-blood units two years ago.

 

One group of clients seeking damages under contract breach, negligence the other wants warranties and cost compensation

[SINGAPORE] Cordlife : P8A 0% received two letters of demand on Mar 28, with regard to prior claims alleging loss and damage from cord blood units storage.

 

The clients, whose cord blood units are stored with Cordlife, fall under two categories. One is unlikely to be suitable for stem cell transplant purposes, and the other has units stored in tanks that are identified as falling within the &ldquo low risk&rdquo or &ldquo unaffected&rdquo band.

 

Those in the first category are claiming for damages which fall under breach of contract and negligence. The aggregate sum claimed by these persons falls within the jurisdiction of the General Division of the High Court, which handles claims exceeding S$250,000.

 

The other category of people have requested certain warranties and undertakings from the group as well as compensation for costs, among others.

 

Cordlife is seeking legal advice with respect to the matters set out in the letters.

 

At this juncture, the company is unable to determine the exact financial impact of the claims or exposure which may arise from the matters set out in the aforementioned letters.

 

According to the statement, if the group is required to settle the claims in the letters of demand, it will likely result in &ldquo a negative impact on the financial position of the group&rdquo for the financial year ending Dec 31.

 

The private cord-blood bank reported a net loss of S$6.3 million for its second half ended Dec 31, 2024, compared with a net profit of S$1.3 million in the previous corresponding period. This was largely due to the fallout from lapses discovered in the storage of the company&rsquo s cord-blood units two years ago.

The company also gives an update on clients&rsquo claims arising from the storage lapses

 

PRIVATE cord-blood bank Cordlife : P8A +1.91% has sunk into the red with a net loss of S$6.3 million for its second half ended Dec 31, 2024, compared with a net profit of S$1.3 million in the previous corresponding period.

 

This was largely due to the fallout from lapses discovered in the storage of the company&rsquo s cord-blood units two years ago, the group said in a bourse filing on Saturday (Mar 1) night.

 

Loss per share for the half-year period came in at S$0.0247, from earnings per share of S$0.0051 in the corresponding year-ago period.

 

Revenue fell 32 per cent to S$18.7 million, from S$27.4 million a year earlier. This was because the mainboard-listed company&rsquo s Singapore operations were suspended until Sep 14, 2024, after the storage lapses were discovered.

 

The company was allowed to resume operations from Sep 15, 2024, to Jan 13, 2025, but only partially. It only fully resumed operations on Jan 14, 2025, after receiving cord-blood banking and human tissue banking licences, which are valid for a year.

 

As a result, revenue from the company&rsquo s diagnostics business unit declined 11.6 per cent to S$1.9 million, largely due to a decrease in testing volume in Singapore.

 

The group&rsquo s banking unit also saw revenue fall 33.7 per cent to S$16.7 million in the half-year period, due to a 25 per cent decrease in new samples processed and stored, mostly from Singapore and India.

 

The decline was also due to the additional financial impact of the refund and waiver for high-risk tanks of S$700,000 recorded in the second-half period.

 

No dividend was declared for the half year, unchanged from the year before.

 

For the full-year, it posted a net loss of S$18.7 million, compared with a net profit of S$3.6 million a year earlier.

 

KEY POINTS

 

H2 2024

Revenue: S$18.7 million (-32%)

 

Net loss: S$6.3 million

 

No interim dividend declared

 

Nevertheless, Cordlife remains confident about the cord-blood banking industry&rsquo s long-term growth potential, which will be buoyed by the ongoing shift towards preventive and precautionary care.

 

Furthermore, the company said that it has made &ldquo significant upgrades&rdquo to its processing and storage facility in Singapore.

 

These included implementing an enhanced laboratory monitoring system to provide round-the-clock real-time on-site and remote monitoring of key equipment.

 

It has also increased the number of laboratory and technical personnel, strengthened operational protocols and established a medical and technical advisory board to provide guidance on best practices.

 

Cordlife has remained &ldquo cautiously optimistic&rdquo that its financial performance for FY2025 will improve, barring unforeseen circumstances.

 

In a separate filing on Saturday night, Cordlife gave an update on the status of the claims against it by clients affected by the storage lapses.

 

The company has continued to receive claims from clients, some of which have been raised in the Small Claims Tribunal.

 

As at Mar 1, some of these claims have been voluntarily discontinued, and one claim has been dismissed by the tribunal, said the group.

 

Last month, Cordlife was also informed by a separate group of clients that they are in the process of assessing the losses suffered by the lapses. The company has been in the process of seeking legal advice with relation to these claims.

 

The company has been actively monitoring and attending to the claims and will take necessary steps to engage with the relevant parties.

 

Since the status of the claims has remained uncertain, it is unable to determine the full impact on its financial performance and prospects for FY2025.

 

Should the company be required to settle all claims made by multiple clients, this will likely result in a negative impact on the financial position of the group for the financial year ending Dec 31, 2025.

The cord-blood bank announces other changes to its board

 

CORDLIFE Group&rsquo s independent director Dr Teo Tong Kooi stepped down from his role at the embattled cord-blood bank on Wednesday (Feb 19).

 

He relinquished the role to &ldquo focus on other commitments&rdquo , the company said. Dr Teo, 68, was appointed an independent director on May 14, 2024.

 

The company also announced that it had appointed Yuen Wai as an independent director with effect from Wednesday. In addition, she was named a member of the audit and risk committee, as well as the remuneration committee.

 

The 49-year-old is currently a consultant at Preeminent Medical Centre, and principally based in Canada.

 

Cordlife announced other board changes as well.

 

Independent directors Gao Xiang and Sim Sze Kuan were appointed as chairman of the nominating committee and chairman of the remuneration committee, respectively.

 

Non-independent non-executive chairman Zhai Lingyun was also appointed as a member of the nominating committee.

 

Meanwhile, group executive director Chen Xiaoling relinquished her role as a member of both the nominating and remuneration committees.

His effective date of cessation is Feb 28

 

PRIVATE cord-blood bank Cordlife&rsquo s group chief executive officer Yiu Pang Fai, 35, has tendered his resignation &ldquo to pursue other opportunities&rdquo and its board of directors has accepted his decision. 

 

His effective date of cessation will be Feb 28, 2025, Cordlife said in a Wednesday (Feb 12) bourse filing.

 

The group has commenced the search for a new group CEO and said it would make an &ldquo appropriate announcement&rdquo when one is appointed. 

 

Cordlife said: &ldquo Yiu informed the company that he has resigned as the group CEO&hellip (he) will remain available to facilitate a smooth handover of remaining responsibilities.&rdquo  

 

It added: &ldquo The board wishes to put on record its appreciation for Mr Yiu&rsquo s contribution during his tenure.&rdquo

 

He was appointed as Cordlife&rsquo s group CEO around a year earlier on Feb 19, 2024. 

 

The company disclosed then that his brother Yiu Ming Yiu &ndash who was previously arrested by the Commercial Affairs Department and then released on bail &ndash is a non-independent, non-executive director of Cordlife. His father Yiu Chi Shing and his mother Lui Yim Sheung are deemed interested in Cordlife shares held by TransGlobal Real Estate Group, a controlling shareholder of the healthcare group.  

 

Yiu Pang Fai was formerly an executive director of TransGlobal&rsquo s family office division in Hong Kong prior to his appointment as Cordlife&rsquo s group CEO.  

 

In November 2023, Cordlife was slapped with a six-month suspension from the Ministry of Health (MOH) after a check uncovered lapses in the storage of its cord-blood tanks. The company was barred from collecting, testing, processing and/or storing new cord blood and human tissues for six months. 

 

The change in leadership comes amid Cordlife serving a six-month suspension from collecting, testing, processing and/or storing new cord blood and human tissue. 

Cordlife names ex-TransGlobal executive director Yiu Pang Fai as new group CEO

 

The lapses sparked a spate of leadership changes and arrests over the following months as Cordlife shares plunged and dropped as much as 42.9 per cent on Dec 1, 2023. In May 2024, the company&rsquo s suspension was extended by up to an additional three months following further inspections by MOH in April and May.  

 

In June 2024, the company reported a net loss of S$11.6 million for its first quarter ended March 2024, reversing from its S$1.2 million net profit for the year-ago period.

 

In August 2024, MOH issued a notice allowing Cordlife to resume cord-blood banking services with restrictions from Sep 15, 2024, to Jan 13, 2025. Under the restrictions, the company could not collect, test, process and/or store more than 30 units of new cord blood each month for the period.

 

On Jan 14, Cordlife announced that MOH had renewed its operation licences for one year with immediate effect. The ministry said the company had satisfactorily addressed key shortcomings and that it would closely monitor its governance and practices.

Company says it is currently unable to assess impact on fiscal performance for financial year ending Dec 31, 2025

 

THE Ministry of Health (MOH) will closely monitor Cordlife Group : P8A +9.66%&rsquo s governance and ensure its practices are consistent and compliant with regulatory requirements, the ministry said on Wednesday (Jan 15).

 

This was in response to queries on Tuesday&rsquo s statement that Cordlife&rsquo s cord-blood banking service and human-tissue banking service licences have been renewed for a year, with immediate effect.

 

Following the announcement, the company&rsquo s shares surged 10.3 per cent or S$0.015 to S$0.16, as at 3.05 pm on Wednesday.

 

MOH said that its audits showed that Cordlife has satisfactorily addressed critical shortcomings in various areas. This includes temperature monitoring practices, cord-blood inventory management, and incident response, said the health ministry.

 

Cordlife&rsquo s cord-blood banking service and human-tissue banking service licences were therefore renewed by the director-general of health.

 

However, in view of the recent organisational changes to Cordlife&rsquo s key office holders, the licence renewal will be for a &ldquo limited period&rdquo of one year, pointed out MOH.

 

Cordlife on Tuesday said: &ldquo The company is committed to meeting all applicable regulatory requirements and compliance measures, before considering the full resumption of operations in Singapore.&rdquo

 

The company added that at the current stage, it is unable to assess the impact on its fiscal performance for the financial year ending Dec 31, 2025.

 

Prior to this licence renewal, MOH allowed the company to resume its cord-blood banking service operations &ldquo in a controlled manner&rdquo , restricting its operations to not more than 30 units per month of new cord blood from infant donors, from Sep 15, 2024, to Jan 13, 2025.