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Mirach gets 15-month extension till June 5, 2020 to exit SGX watch list

THE Singapore Exchange has granted mainboard-listed Mirach Energy a 15-month extension, from Feb 28, 2019 to June 5, 2020, to exit the bourse's watch list, the company said in an exchange filing on Monday.

If Mirach is unable to meet the requirements to exit the watch list by then, it will need to make or procure a reasonable exit offer for its shareholders. If it fails to do so, it will undertake a voluntary winding up, or petition the Singapore High Court for the company assets to be distributed to all shareholders on a pro-rata basis. 

Executive chairman and chief executive officer, Chan Shut Li, who is a controlling shareholder, must also vote in favour
of resolutions related to the voluntary winding up, in a general meeting to seek shareholders’ approval for the company to be voluntarily wound up.

Mirach was previously given until Feb 28 to exit the watch list, and applied for the latest extension on March 4.

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It said it applied for a deadline extension because it has streamlined its existing oil and gas business segment and operations, improved its cash flow and diversified into new businesses and revenue streams.

The group has also undertaken three placement exercises to fund general working capital and new business activities.

It reported a consolidated pre-tax profit of US$766,000 for fiscal 2018, compared to a previous pre-tax loss of US$9.6 million. The group's consolidated pre-tax profit including exceptional or non-recurrent income and extraordinary items is US$2.04 million.

As at Aug 31, 2017, its share price was S$0.04 and it had a market capitalisation of S$4.76 million. Comparatively, on Feb 22, 2019, its shares closed at S$0.139 and it had a market cap of S$28.22 million.

Mirach needs to meet a minimum trading price of S$0.20 and a S$40 million market cap to exit the watch list.

The company said it intends to explore and pursue more business opportunities and will undertake further fundraising exercises if needed.

As at 9.26am, its shares traded up 7.14 per cent, or 1.1 Singapore cents, at S$0.165.