Magnus Energy seeks more time to submit trading resumption proposal

MAGNUS Energy Group is seeking an extension of around two months to Dec 11 to submit its proposal for its shares to resume trading, said the firm in a regulatory update on Wednesday.

Its shares have been suspended from trading since August 2019, following the release of an external report by Provenance Capital, which was hired by the firm to review selected transactions from 2013 to 2017. The probe had been opened after queries were raised by its former executive managing director, Charles Madhavan.

The request for an extension comes because its appointed internal auditor, Nexia TS Risk Advisory, tasked with reviewing the findings of the Provenance report, can release the first draft of its findings and recommendations only around Nov 6. Nexia plans to commence the fieldwork on the Provenance report on Oct 19, and expects to take around two weeks to complete the review.

The group will then require approximately one month to implement the recommendations by Nexia, said Magnus.

The auditor is at the moment finalising the internal audit report for the company's annual report for the financial year ended June 30. That will be released no later than Oct 15.

Magnus said: "As the review of the issues raised in the Provenance report is an essential step in addressing the concerns that led to the suspension of the company's shares and would have a material impact on any proposal to be submitted by the company for a resumption of trading, the company is seeking an extension of time of up to Dec 11 to fulfil all the requirements set out by the SGX-ST in relation to the submission of the resumption proposal."

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