LET asks to lift trading halt after responding to queries

Singapore

LEADER Environmental Technologies (LET) has asked that the trading of its shares resume on Thursday after responding to queries by the Singapore Exchange (SGX) on Wednesday evening.

The China-based investment holding company called for a halt on Wednesday afternoon, less than an hour after SGX queried its "unusual price movements" following a 29.5 per cent surge in its share price.

Its share price rose steadily from Wednesday's open to trade 1.9 Singapore cents or 19.6 per cent higher at 12 cents as at the midday trading break. It then continued its upward trajectory to hit an intraday high of 13 cents at 1.35pm.

SGX had asked LET if it was aware of any information not previously announced which, if known, might explain the trading activity.

In a bourse filing, the group said it had just secured a 56.5 million yuan (S$11.5 million) design, supply and commissioning contract for the treatment and recycling of industrial wastewater at Shijiazhuang National Economic Development Zone in China's Hebei province at noon on Wednesday.

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This is the first major contract secured by its subsidiary, United Greentech (Tianjin). The announcement of the contract was approved by the board and pending release and upload on SGXNET after market close on Wednesday, said the group.

Other than this pending announcement, LET was "not aware of any information not previously announced that is potentially material and price-sensitive".

SGX had also asked whether the group was aware of any other possible explanation for the trading, which may include public circulation of information by rumours or reports.

Save for the announcement on the appointment of Lin Yucheng as chairman and chief executive officer of LET on Dec 28 last year, the group said the board was unaware of any other possible explanation for the trading activity.

It further confirmed its compliance with listing rules.

LET had called for a trading halt with immediate effect at 2.37pm on Wednesday. Its last traded price of 12.3 cents represents an increase of 2.8 cents or 29.5 per cent after about 59.4 million shares worth S$6.6 million changed hands.

Some three million shares were transacted at S$0.09 each via a married deal as at 9.10am on Wednesday, according to Shareinvestor data.

LET's last announcement before the trading halt was on Jan 5 regarding the incorporation of two wholly-owned subsidiaries in China, namely United Greentech Investment, an intermediate investment holding company based in Guangzhou, as well as United Greentech (Tianjin).

The latter was established as United Greentech Investment's subsidiary, and will be principally engaged in the business of municipal sludge treatment and management, industrial wastewater treatment and recycling, as well as other environmental-related projects.

The incorporation of both subsidiaries is not expected to have any material impact on the net tangible assets per share and earnings per share of LET for the financial year ending Dec 31, 2021, said the group in a bourse filing on Tuesday.