Seafood exporter Alliance Select Foods International Inc. (ASFII) has announced its intention to comply with the Securities and Exchange Commission (SEC)’s demand letter and writ of execution related to a case filed against the company by its minority stockholders.
In a regulatory filing, ASFII said that its board of directors has instructed the corporate secretary to adhere to the SEC en banc’s demand letter and writ of execution. However, the company clarified that its compliance is “without prejudice and subject to the outcome of the pending petition for review with urgent motion for temporary restraining order or writ of preliminary injunction” which it filed with the Court of Appeals earlier this year.
ASFII emphasized that the demand letter and writ of execution will not impact its business operations, financial condition, ownership structure, or capital structure until they become final, executory, and fully implemented.
The company received a resolution from the SEC en banc on June 14, granting a motion for the issuance of a writ of execution filed by the complainants, including minority shareholders Hedy S. C. Yap-Chua, Harvest All Investment Limited, Victory Fund Limited, and Bondeast Private Limited.
The complainants alleged that the private placement of shares conducted on May 5, 2014, and the stock rights offer carried out by the company in 2015 are null and void, citing a supposed violation of Section 19 of the Securities Regulations Code.