Ultrasonic AG CEO, COO, And Company Cash Go Missing

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This will be an interesting case study one day…

The chief executive officer and chief operating officer of Ultrasonic AG (ETR:US5) disappeared, and most of the cash of the company were missing, according to a statement released on Wednesday.

CFO Chi Kwong Clifford Chan informed the supervisory board that he cannot reach CEO Qingyong Wu and COO Minghong Wu during the weekend. Based on his inquiries, both executives left their homes, and their whereabouts were unknown.

Ultrasonic’s cash in China, Hong Kong transferred

The accounting department of Ultrasonic AG (ETR:US5) found that most of its cash in China and Hong Kong have been transferred and “no longer on the company’s range of influence.”

Chan said the “German holding company has a relevant six-figure amount in command” to meet its current payment obligations as normal. The supervisory board discussed the matter with authorities and business partners to obtain more information for clarification.

Ultrasonic secured $60M credit facility

In August, Ultrasonic AG (ETR:US5) disclosed that it was able to secure a $60 million credit facility from Nomura International (Hong Kong) Ltd to fund its growth. At the time, the company said its management board was exploring various options for acquisitions. The company said the new credit facility provided the necessary financial flexibility while securing long-term financing for its operating business and upcoming investments.

Management changes

Last week, Ultrasonic AG (ETR:US5) announced that COO Minhong Wu will take a six-month leave of absence due to health problems. Wu informed the supervisory board that he needed to go to the hospital for medical treatment.

CEO Qinyung Wu and two long-standing senior managers of sales and marketing took over the COO’s operational duties during his absence.

In addition, the company also announced that CFO Chan decided to resign from his position on September 30, 2014. He will be succeeded by Yeung Man Kin. He recently served at the Amnesty International Hong Kong and was responsible its accounting and budget planning.

The shares of Ultrasonic AG (ETS:US5) are trading €1.85 per share, up by nearly 3% at the time of this writing at 2:56 PM (GMT+2) in Germany. The company is engaged in the design, production and sale of shoe soles, sandals, slippers, urban footwear and accessories. It is a Germany-based holding company of Chinese-Ultrasonic Group.

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