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China Taisan requests share trading suspension, cites talks with potential investor
CHINA Taisan Technology Group on Wednesday requested to suspend trading in its shares, saying that "the company is in discussion with a potential investor for a fundraising exercise".
It added that it will make an announcement once it is finalised.
This comes a day after the Singapore Exchange (SGX) queried the fabric manufacturer on several matters regarding its financial results for its first quarter ended March 31, 2017.
In July, the company said that it lost its lead independent director Ngan See Juan, after a bankruptcy order was made against him. It added that the board will be reconstituting the various committees arising from his vacancy.
In June this year, independent auditors from RT LLP also warned of significant doubts over the firm's ability to continue as a going concern. They noted that the group posted a net loss of over 128.7 million yuan (S$26 million) and net operating cash outflows of more than 13.6 million yuan.
It had just over two million yuan of cash and cash equivalents compared to over 76.2 million yuan of current liabilities on hand. "These conditions indicated the existence of a material uncertainty which may cast a significant doubt over the group's ability to continue as a going concern," the auditors said.