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SGX flags possible regulatory breaches at YuuZoo Corp, issues compliance notice

THE initial findings from an independent review of mainboard-listed online media company YuuZoo Corp's finances have been referred to the relevant authorities for possible breaches of listing rules.

The company has also been slapped with yet another notice of compliance - its second in as many months - from the bourse operator.

In an exchange filing on Monday, the Singapore Exchange (SGX) said a draft report from YuuZoo's independent reviewer, Ernst & Young Advisory, showed that YuuZoo has not given EY necessary access to information and data.

The review was also restricted by scope exclusions imposed by YuuZoo which were inconsistent with the spirit of an independent review, SGX added.

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The bourse said it issued a notice of compliance to YuuZoo on Monday, requiring its independent reviewers to submit an executive summary of their initial findings to SGX as soon as these are finalised. The company will also be required to publicly release these findings.

The bourse had suspended trading of YuuZoo's shares in March, after the company missed a disclosure deadline tied to regulatory queries over its full-year results for the 12 months ended Dec 31, 2017.

The suspension will be lifted when regulators are satisfied that "the state of affairs of the company can be ascertained and the shares ... can be traded on a fair, orderly and transparent basis".

SGX had previously demanded that the online media company explain some of the figures in its full-year results announcement and correct errors.

YuuZoo had been asked to account for certain financial figures, such as a year-on-year decline in group revenue, for the year to Dec 31, 2017.

SGX also flagged an "other income" amount of S$8 million in the fourth quarter, as well as an increase of assets available for sale and a corresponding sum recognised in revenue.