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Huan Hsin receives delisting notice, must provide exit offer; company to appeal
THE Singapore Exchange (SGX) has ordered electronics contract manufacturer Huan Hsin Holdings to delist because of its failure to meet mainboard requirements on profitability and market capitalisation.
The stock will continue to trade until the market close of Jan 18, 2019, and be suspended from 9am on Jan 21 until the completion of a mandatory exit offer. Huan Hsin shares changed hands at 1.5 Singapore cents as at 3.05pm on Wednesday after the delisting notice was announced, down 11.8 per cent or 0.2 Singapore cent on the day.
Huan Hsin said that it plans to appeal the order, and is consulting professionals on the development.
Huan Hsin was placed on the watch list on March 5, 2014, for posting three consecutive years of pre-tax losses and for failing to maintain a market cap of at least S$40 million. It initially had until March 4, 2016 to get back into compliance, and was subsequently given three extensions of time to exit the list.
The third extension, which pushed the deadline to March 4, 2019, was conditional upon the company hitting certain milestones, including submitting a reverse takeover application and circular. But Huan Hsin's reverse takeover deal fell through in August, and the company sought a further extension from the market regulator.
On Wednesday, SGX notified the company that it would not grant another extension, and that the company will be delisted. SGX ordered the company or its controlling shareholder to advise the exchange on a "reasonable" exit offer proposal within one month.