Dennis Nguyen
Dennis Nguyen, the CEO of Nasdaq-listed Society Pass Inc., has stepped down from the post, the embattled e-commerce company said in a regulatory filing.
He is replaced by CFO Raynauld Liang, who previously led the investment function of L K Ang Corporate, a family office. He earlier founded Connex Capital, an IPO-focused advising company.
Society Pass has also appointed Yee Siong Tan as CFO. Tan is the company’s controller and previously served as financial controller for ISOTeam, a construction engineering company, and finance manager for Hoe Leong Corp., a shipping and equipment supplier.
While Society Pass said Nguyen’s resignation didn’t result from a disagreement, the development comes at a time when the data-driven loyalty company is embroiled in multiple controversies in the US.
Last month, the Supreme Court of the State of New York ordered the firm to pay approximately US$750,000 to the company’s former CTO, Rahul Narain, for breaching his employment contract. The judgement was delivered on a lawsuit filed by Narain four years ago.
The blow came just a few months after the same court ordered Society Pass to award a significant block of pre-IPO shares valuing approximately US$6.61 million, with up to an additional US$2.38 million penalty interest, to its co-founder and former CMO Thomas O’Connor for the breach of the Common Stock Purchase Warrant.
Furthermore, it was recently removed from the Russell 2000 index (a small-cap US stock market index), a blow to the company’s efforts to retain the coveted institutional investors that can greatly support Society Pass’s share price.
According to documents, Society Pass was being investigated by the US Securities and Exchange Commission (SEC) earlier this year.
Also Read: US court orders Society Pass to pay pre-IPO shares to co-founder and ex-CMO; company under SEC probe
Along with the executive appointments, Society Pass said it entered into a structured financing agreement to sell up to US$40 million in shares to Strattners. Under the agreement, Strattners can buy shares at 96 per cent of the current market price.
However, Society Pass’s most recent 10-Q filing showed that it only has US$10.9 million left in its coffers. A 10-Q filing is a financial report that all public companies must submit to the US Securities and Exchange Commission (SEC) at the end of their first three fiscal quarters.
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