REPLYING to a Singapore Exchange (SGX) query, entertainment group mm2 Asia said it is of the opinion that there is no need to suspend trading of its shares pursuant to Listing Rule 1303(3), in a clarification announcement on Thursday night.
The rule provides for the suspension of trading when an issuer is unable to continue as a going concern, or unable to demonstrate to SGX and its shareholders that it is able to do so.
SGX's query was in reference to mm2 Asia's July 13 announcement that its independent auditor had noted a material uncertainty "that may cast significant doubt" on the mainboard-listed firm's ability to continue as a going concern, in its report on mm2 Asia's audited financial statements for the year ended March 31, 2021.
SGX asked mm2 Asia to disclose its board's opinion as to whether trading in its shares should be suspended, and its board's confirmation "as to whether sufficient information has been disclosed to enable trading of the company's shares to continue in an orderly manner, and the bases for its views".
In its reply, mm2 Asia said that it is aware of the requirement, noting that circumstances specified under Listing Rule 1303(3) include: when an application is filed to place the issuer or significant subsidiary under judicial management; when an application is filed for the liquidation of the issuer or significant subsidiary, and the amount of the debt alleged is significant; or when the issuer is unable to reasonably assess its financial position and inform the market accordingly.
mm2 Asia confirmed that neither the company nor any of the subsidiaries are planning or have filed with a court to place the company under judicial management; nor has mm2 Asia received any notification from creditors pertaining to liquidation.
It added that the company is able to reasonably assess its financial position to-date.
"The board further confirms that all available information in addressing the issue of a going concern have been disclosed in the company's announcements dated 13 July 2021 and 15 July 2021, and the information (is) sufficient to enable trading of the company's shares to continue in an orderly manner," said mm2 Asia.
In view of the above, its board is of the opinion that there is no need to suspend trading of its shares pursuant to Listing Rule 1303(3), it said.