Society Pass Names New CEO Amid Legal Storm. Inside the e-commerce firm’s executive changes and mounting challenges that test its market resilience.
Society Pass Inc. is undergoing significant changes. A recent regulatory filing reveals the departure of CEO Dennis Nguyen, with Raynauld Liang taking the reins amid a backdrop of legal controversies and financial challenges. The Supreme Court rulings, demanding substantial payments and impacting the company’s market standing, add complexity to Society Pass’s narrative. Join us as we unpack the facts surrounding these shifts, legal battles, and financial maneuvers shaping Society Pass’s trajectory in the competitive e-commerce arena.
In a recent regulatory filing, Society Pass Inc., a Nasdaq-listed e-commerce company, announced the resignation of its CEO, Dennis Nguyen. He is being succeeded by Raynauld Liang, the company’s CFO, who previously led the investment division of L K Ang Corporate, a family office. Mr. Liang is also the founder of Connex Capital, a company specializing in IPO-focused advisory services. Additionally, Yee Siong Tan has been appointed as the new CFO, coming from a background as the company’s controller and previously holding roles as the financial controller for ISOTeam, a construction engineering firm, and the finance manager for Hoe Leong Corp, a shipping and equipment supplier.
Society Pass clarified that Dennis Nguyen’s departure was not due to a disagreement, but it comes at a challenging time for the data-driven loyalty company, which is currently facing several legal controversies in the United States. Last month, the Supreme Court of the State of New York ruled that Society Pass must pay approximately $750,000 to its former Chief Technology Officer, Rahul Narain, for breaching his employment contract, a lawsuit that Narain filed four years ago.
This legal setback occurred just a few months after the same court ordered Society Pass to award a substantial block of pre-IPO shares, valued at around $6.61 million, along with a potential $2.38 million penalty interest, to its co-founder and former Chief Marketing Officer, Thomas O’Connor, for the breach of the Common Stock Purchase Warrant. Additionally, Society Pass suffered a setback when it was removed from the Russell 2000 index, a small-cap US stock market index, which impacted its ability to attract institutional investors, further affecting its share price.
Furthermore, documents indicate that Society Pass has been under investigation by the U.S. Securities and Exchange Commission (SEC) earlier this year.
In addition to the executive changes, Society Pass has entered into a structured financing agreement with Strattners to sell up to $40 million in shares. This agreement allows Strattners to purchase shares at 96% of the current market price. It’s worth noting that Society Pass’s most recent 10-Q filing revealed that the company has only $10.9 million remaining in its coffers. A 10-Q filing is a financial report that all public companies are required to submit to the U.S. Securities and Exchange Commission (SEC) at the end of their first three fiscal quarters.
