AM Group Holdings under scrutiny over alleged HK$16.5m fund misappropriation

The Stock Exchange has issued a Third Additional Resumption Guidance to AM Group Holdings, mandating an independent forensic investigation into several arrangements including the Alleged Show Times HK Loans, the Alleged Charm Winner Cooperation Agreement, and the Alleged Developer Cooperation Agreements. These transactions involve a purported fund outflow of HK$16.5 million from the company to Charm Winner. Concerns were raised regarding the genuineness and commercial rationale of these agreements, particularly as the alleged borrowers reportedly never received the loans.

The investigation will also examine the Opco Acquisition, the Place Down, and related legal actions, assessing their impact on the company’s business operations and financial position. The Stock Exchange questioned the relationship between the company, its directors, and Charm Winner, and whether the HK$16.5 million outflow constituted misappropriation of company funds.

Trading in AM Group Holdings' shares has been suspended since 24 September 2024 and will remain so until all resumption conditions are met. The company is tasked with devising an action plan to address these issues and comply with Listing Rules to the Stock Exchange's satisfaction.