Roshow Technology has fallen on hard times. Just one month after announcing a joint venture with Biel Crystal Manufactory to enter the sapphire substrate industry, the company cancelled a financing application in the aftermath of the company Board Secretary Chai Shen’s resign. 

Earlier this week, Roshow Technology revealed that the company will not be able to successfully complete its private funding round and has withdrawn a financing application. The company decided to call off the private funding after confirming with three other financial institutes, and discussing with underwriter DongXing Securities.

The company projected the private funding could not be completed before the expiration date of a funding project approved by shareholders on May 10, 2013. Although, the company submitted the financing application to China Securities Regulatory Committee on May 16, 2013 it decided to cancel the  application. According to the funding plan, Roshow Technology aims to acquire RMB 970 million (US $156 million) from three investors including Mirae Asset Huachen Fund Management Co. by selling 140 million stocks in electromagnetic wire and three other businesses at RMB 7.06 per share. 

On top of financial issues, Shen announced his resignation as Board Secretary and Vice President on May 5, 2014, due to personal issues. The company was informed by the Economic Crime Investigation Department of Zhejiang Provincial Public Security Department about Shen’s suspected criminal involvement and resulting detainment on April 26, 2014. Reasons for detainment have not been clarified yet.