News: IOU Ioupay Updates On Its Current Financial Situation

March 22 (Reuters) - Ioupay Ltd (IOU) :

• UPDATE ON ITS CURRENT FINANCIAL SITUATION
• FOLLOWING INVESTIGATION OF CO'S MALAYSIAN OPERATIONS, THERE ARE GROUNDS TO SUSPECT THAT FORMER SENIOR EXECUTIVE ENGAGED IN SIGNIFICANT FRAUD
• SUSPECTED SIGNIFICANT FRAUD NOW BEING INVESTIGATED BY MALAYSIAN POLICE AUTHORITIES
• MATTER HAS BEEN REPORTED TO MALAYSIAN POLICE AUTHORITIES
• BOARD HAS STRENGTHENED INTERNAL PROCEDURES AND CONTROLS TO PREVENT ANY SIMILAR OCCURRENCE IN FUTURE
• BOARD IS TAKING ALL NECESSARY ACTIONS TO ENSURE THAT THERE IS SUFFICIENT CASH TO SUPPORT OPERATION
• SUSPECTED FRAUD HAS INVOLVED MISAPPROPRIATION OF COMPANY FUNDS AND IMMEDIATE ACTIONS ARE UNDER WAY TO RECOVER THESE FUNDS
• FRAUD INVOLVED ACTIVELY CONCEALING TRUE STATUS OF ABOUT A$7 MILLION IN CASH THAT WAS PURPORTEDLY HELD BY STAKEHOLDING FIRM IN MALAYSIA
• CO HAS TEMPORARILY PAUSED OFFER OF LOANS IN ITS BNPL BUSINESS
• BASED ON CURRENT STATUS OF INVESTIGATION, COMPANY'S ACCOUNTS WILL HAVE TO BE RESTATED
• COMMENCED A REDUCTION IN HEADCOUNT IN MALAYSIAN OFFICE
• IN DISCUSSIONS WITH AUDITORS TO DETERMINE HOW MISAPPROPRIATION OF FUNDS REMAINED UNDETECTED, & TO RESTATE ACCOUNTS AS NECESSARY
• EXPECTED THAT BNPL BUSINESS CAN BE RESTARTED IN LATE MARCH
• BOARD HELD DISCUSSIONS WITH PARTY INTERESTED IN SUPPORTING CO, SUPPORT WOULD INVOLVE LOAN OF ABOUT AUD5 MILLION