No exit offer to shareholders of suspended Dapai International

BACKPACK maker Dapai International Holdings Co, which is headed for a delisting, has confirmed that neither the company nor any of its major shareholders intends to make an exit offer to shareholders.

This is due to its "present net liability position and negative working capital position due to its past consecutive years of losses," it said in a Singapore Exchange filing on Monday evening.

Also, the company's executive chairman, Chen Xizhong, has cited a "lack of personal funds" for being unable to make an offer.

Dapai had received a delisting notification from the Singapore Exchange in July this year, and had also been given one month from then to come up with an exit offer proposal for the shareholders.

The company faces delisting after it failed to get itself off the financial criteria watchlist that it was placed on in 2014.

Mainboard-listed companies that have incurred three consecutive years of pre-tax losses and whose market capitalisation over the past 120 days have fallen below S$40 million end up on the financial criteria watchlist.

In order to be removed from the watchlist, the company needs to record a consolidated pre-tax profit for the most recently completed financial year, based on the latest full-year consolidated audited accounts, as well as have an average daily market capitalisation of S$40 million or more over the last six months.

Trading of shares in Dapai have been suspended by the exchange since August 10, 2017.