July 11, 2017
Chelsea Logistics Holdings Corp. (CLC) Chairman Dennis A. Uy – who concurrently serves as the president and chief executive officer of 2GO Group, Inc. – has approved the restatement of the financial statements of 2GO for the prior periods to ensure value for the prospective investors of CLC.
The new management and board of directors of 2GO engaged SGV and Company to audit the publicly listed company’s balance sheet and income statement for the periods ending December 31, 2016 and March 31, 2017 to ensure their fair presentation and establish accountabilities.
It is only prudent to disclose and release the restated financials; it is being transparent to our investors and stakeholders.
The restatement also reflects the commitment of the new management and board to raise corporate governance standards in the company.
The restated items are non-cash and non-recurring. Thus, the prospective profitability of 2GO remains strong.
CLC, which acquired a significant interest in 2GO only in March 2017, maintains its confidence in the publicly listed company’s prospects given the synergies that the partnership of the Udenna Group and SM Group could bring.
Accordingly, the growth prospects of CLC remain intact. The company considers the strong interest of institutional and retail investors in its initial public offering as a testament to its good governance practices and sound strategies.
The new management of 2GO only took over in the second quarter of 2017. It has committed to steer the integrated transport solutions provider to growth.