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Innopac's cure period extension application rejected, may face delisting

INNOPAC Holdings' application for more time to satisfy listing requirements has been rejected by the Singapore Exchange Securities Trading (SGX-ST), the mainboard-listed investment holding company said on Wednesday after market close.

SGX-ST has also informed the company "that a delisting notice will be forthcoming" at the end of the watch-list cure period on June 2, 2019, said Innopac. The company has been on the SGX's watch-list for delisting since June 3, 2016.

Innopac had earlier proposed to place 8.4 billion new shares at 0.1 Singapore cent apiece for S$8.4 million to a group of 11 investors, later revised to placing 6.1 billion new shares for S$6.1 million to nine investors.

With the rejection of Innopac's application for more time, SGX-ST will not clear its circular to shareholders in respect of the proposals, Innopac said on Wednesday.

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"SGX-ST has also taken the view that any issuance of placement shares at or below the minimum trading price of S$0.001 is unacceptable," it added.

Innopac said it will be filing an appeal to SGX to reconsider the rejection.

Trading in Innopac shares has been suspended since June 7, 2018.