SHARES of FJ Benjamin (FJB) closed at S$0.046, 130 per cent or S$0.026 higher, on Wednesday following the announcement of a partnership with Lazada Singapore and its removal from the Singapore Exchange’s (SGX) watchlist a day earlier.

The last time the counter traded near such price levels was more than two years ago in August 2018.

The sudden spike began an hour before the company announced that it had signed a Memorandum Of Understanding (MOU) with e-commerce platform Lazada, aiming to "deliver the ultimate retail experience to customers across all channels and devices".

According to the press statement on Wednesday, the partnership will expand and incubate new FJB brands, as well as boost their e-commerce performance in Singapore.

FJB added that it is looking at expanding its e-commerce into markets where Lazada has a presence, such as Vietnam, Thailand and the Philippines.

"Under the terms of the MOU, both FJB and Lazada will, within 90 days, work on a detailed action plan and a definitive agreement to move the partnership forward," said FJB in the statement.

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The group had been on SGX's watchlist since December 2016 for sustaining pre-tax losses for more than three consecutive financial years, and having a market cap of less than S$40 million. It successfully exited the watchlist last year after a long period of restructuring brought its earnings back to black. Net profit for FY2019 improved to S$177,000, a reversal from its net loss of S$1.24 million in FY2018.

Previously a mainboard-listed counter, the company applied to be listed on the Catalist board and received approval from SGX in January this year.