The board of Genesis Research & Development says the biotechnology company has effectively been scuppered by one of its major shareholders and needs to be placed into voluntary liquidation.
On Tuesday, three directors resigned, saying they were unable to continue managing the company due to a lack of funds and lack of communication with UBNZ and Delight Grace, two of the major shareholders.
UBNZ was fronted by May Wang who is facing fraud charges in Hong Kong and was part of an illegal purchase of four Crafar farms.
UBNZ took a 14% stake in the company in 2010 and has a security agreement with the company due to a Convertible Note issued by Genesis to raise more funds.
Genesis board's former chairman Aki von Roy said the company's failure to get some clinical developments off the ground led to a loss of investor confidence, prior to UBNZ coming on board.
But he said UBNZ did not follow through with what it had agreed to do.