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Cedar Strategic doubles as it resumes trading
CATALIST-LISTED property development and investment company, Cedar Strategic, has secured approval from the Singapore Exchange (SGX) to resume the trading of its shares on Thursday. On the stock market, the stock doubled to S$0.004 by 10.21am.
This follows a trading halt put in place on April 9, 2015, and a suspension thereafter on April 14, 2015.
The company was also allowed to list and quote 500 million subscription shares in the capital of the company, to be issued to Luo Shandong at S$0.0028 a piece, pursuant to a share subscription agreement between the company and Mr Luo.
This will raise some S$1.4 million for Cedar. Mr Luo is the chairman of Hunan Toener Investment.
Cedar had earlier told media that it is slowly getting back on track as it emerges from debilitating governance issues and failing businesses. Cedar was known as China Titanium before a restructuring in 2012 which changed its core business to real estate.
Last June, Tan Thiam Hee took over as the firm's chief executive along with a new management team. At that point, the firm had next to no money. Half of what it had was with banks.
Cedar also faced scrutiny last year after it sold its shares in China's property venture Trechance in February as the investment had failed to gain traction. Share trading was suspended in April, as the firm's internal difficulties came to the fore.
A special audit, commissioned by the new management and completed in November, revealed several lapses including the failure to collect divestment proceeds, missing funds and overpayment to some former directors.
On Wednesday, the board confirmed that an initial review by Baker Tilly suggests that the company's internal controls are "more than adequate", and its working capital was sufficient for the next 12 months.