MAINBOARD-LISTED Tee International has received a notification of delisting from the Singapore Exchange (SGX), the company said in a bourse filing on Friday (Jan 12).

Its application requesting for a further extension of time until Mar 31 to submit its revised trading resumption proposal was also rejected by SGX.

This is on the basis that the company has been unable to provide “substantive details of its proposed acquisition and substantiation” to demonstrate that its plans, including its proposed acquisition, would enable it to operate as a going concern and have trading resume, according to SGX.

In the delisting notice served to Tee international by the Singapore Exchange Regulation, SGX noted that trading in the company’s shares has been suspended since Jun 18, 2021.

It pointed out that the company had not submitted a definitive resumption proposal that will allow trading of its securities to resume within 12 months of the date of its suspension; neither had it done so by the extended timeline of Apr 30, 2023.

Due to this, SGX will proceed to delist Tee International. It added that trading of the company’s shares will remain suspended until the company’s delisting from the exchange on Feb 20, 2024.

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Tee International said that it had made the extension application on Dec 27, 2023, to allow the company and its professional advisers “sufficient time” to work towards the resubmission of a trading-resumption proposal.

The company has also been working on fulfilling conditions precedent to its proposed acquisition, since the term sheet was executed on Dec 14, 2023, it said. This includes – but is not limited to – conducting financial and legal due diligence on the target firm.

It stressed that the proposed acquisition was “critical” to the resumption proposal, as the acquisition of the target company would significantly contribute to the group’s financial projections.

This would allow it to present its business as “a robust and viable going concern” in the resumption proposal. The company added that this was in conjunction with a subscription agreement with Meta5 to issue new shares worth S$7.5 million in the company; the grant of S$7.5 million in principal amount of unlisted and non-transferable share options to Meta5; the debt restructuring exercise through a scheme of arrangement; as well as the renounceable non-underwritten rights issue to raise S$3.5 million in proceeds.

The company’s board is currently reviewing the delisting notification and intends to submit an appeal to SGX.