ACUMEN Diagnostics, a subsidiary of Q&M Dental Group, has temporarily ceased operations at one of its labs after its licence was allowed to lapse.
Acumen was notified by the Ministry of Health (MOH) that the clinical laboratory service licence of one of its labs will expire on Sep 15 two days prior.
The licence is issued to Dr Ong Siew Hwa, the company’s chief executive officer, but she was placed on a leave of absence in June to facilitate investigations into her acquisition of an indirect interest in the assets of Acumen’s supplier, among other things.
In her absence, the board appointed Dr Lua Chong Hui Joseph to assume Dr Ong’s responsibilities.
In a bourse filing on Monday (Sep 16) night, Acumen said it had taken steps to change the principal officer of the licensee from Dr Ong to Dr Lua, and to switch the licensee of the laboratory licence to Acumen.
But MOH had rejected both applications. It rejected the application to change the principal officer to Dr Lua as the request was not submitted by or on behalf of the licensee, who is Dr Ong.
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As for the second application, MOH did not allow the change as the conditions for the laboratory licence do not allow for the transfer or assignment of such a licence.
MOH told Acumen that it would need to apply for a new laboratory licence to continue providing clinical laboratory services.
Acumen’s board of directors is considering the next steps to be taken. Depending on the future steps taken by the board, it will assess and review the consequential financial impact on the earnings per share and net tangible assets per share of the group for its current financial year ending Dec 31, 2024.
Shares of Q&M closed S$0.005 or 1.8 per cent higher at S$0.28 on Monday, before the announcement.
