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Best World gets permission to extend trading halt
BEST World International has obtained permission to extend its trading halt by up to two more days in order to prepare, finalise and release a clarification announcement to address certain matters, it said on Thursday.
Shares in the direct selling company had fallen 16.62 per cent on Monday before it requested a trading halt at 11.23 am, pending an announcement.
When trading did not resume on Thursday, Best World issued a holding statement, referring to matters discussed in a Business Times report published on Monday, titled "Sales of DR's Secret in China: Best World's best-kept secret?".
Best World said: "The company would like to assure its shareholders that it has conducted all areas of its business ethically and in compliance with applicable laws and accounting standards."
The trading halt may be lifted no later than 8.30 am next Monday, Best World added.
An Singapore Exchange spokesperson clarified that "under Listing Rule 1302(2), the trading halt can extend beyond three market days if agreed by the Exchange", adding: "The listing rules do not prohibit companies from seeking extension to a trading halt for a few days, without changing it to a suspension, pending the release of an announcement."
Before Monday, Best World shares had soared 171 per cent in 12 months, driven by strong growth in China, where the group derives 66 per cent of total revenue from sales of the DR's Secret line of premium skincare products.
Following the BT report on Monday, which discussed the difficulty in locating Best World's 28 franchisees in China where its DR's Secret skincare products are marketed through a "social selling" model, Best World now lists the addresses of 33 lifestyle centres on its website.