A SUBSTANTIAL shareholder of Cordlife Group, Robust Plan, has sold 4.6 million shares on Jan 23, bringing its stake down from 5.47 per cent to 3.67 per cent, said the counter in a bourse filing on Thursday (Jan 25).

With the sale, which netted S$1.5 million, Robust Plan and its beneficial owner Shanghai Dunheng Capital Management ceased to be a substantial shareholder of Cordlife.

This move comes after Cordlife has faced lapses with its cord-blood storage facilities, with the temperature in one storage tank reaching 20.4 degrees Celsius, well above the acceptable limits of minus 150 deg C. The company has been suspended for a six-month period from collecting, testing, processing and/or storing new cord blood and human tissues from Dec 15, 2023, by the Ministry of Health (MOH).

MOH also found other lapses at Cordlife, such as a new cord-blood processing method which was not properly validated, temperature monitoring systems that failed to send notifications when tanks exceeded acceptable levels and preventive maintenance not being carried out for two tanks. The company has until the end of May to rectify the lapses.

Shares of Cordlife closed flat at S$0.305 on Thursday.