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M Development’s deadline to meet requirements for new listing extended to Mar 7, 2019

INVESTMENT holding firm M Development has been granted a time extension to Mar 7, 2019 by the Singapore Exchange (SGX) to meet the requirements for a new listing.

M Development had announced on Sep 7 last year that it is deemed a cash company as it had no revenue from operations, and the company's assets consisted substantially of cash or short-dated securities.

Under the rules in SGX's listing manual, the exchange will remove an issuer from the official list if it is unable to meet the requirements for a new listing within 12 months from the time it becomes a cash company.

M Development announced this month that it had entered into a Memorandum of Understanding (MOU) on Aug 15 for the proposed acquisition of no less than 51 per cent of Hao Yuan Leather (Taishan) from HY Holdings.

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If undertaken, the proposed transaction will result in a reverse takeover of M Development. Hao Yuan does leather tanning and produces leather products for various industries in China.

Following this, the firm said on Saturday evening that its deadline to fulfil the requirements of a new listing has been extended, after a request made by the firm on Sep 3. The extension is subject to the following conditions:

- the company announcing the signing of the definitive sales and purchase agreement for the reverse takeover by Nov 30, 2018

- the appointment of a financial adviser for the reverse takeover by Nov 30, 2018

- the submission of the circular to be issued to shareholders, which contains information of the reverse takeover, to SGX by Jan 31, 2019

- the despatch of the circular no later than Mar 31, 2019

- the company making an announcement when all the above conditions have been met.

M Development advised shareholders and investors to exercise caution when trading in its shares.

"There is no certainty or assurance as at the date of this announcement that the definitive SPA will be entered into, the terms and conditions of the proposed transaction will not differ from that set out in the MOU, or the proposed transaction will be undertaken at all," the firm said.