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SGX rejects Foreland Fabrictech's appeal against delisting
THE Singapore Exchange (SGX) has rejected Foreland Fabrictech Holdings' appeal against its delisting and request for up to three months to prepare its proposal for the resumption of trading. The Chinese textile company will be delisted from the main board on June 28, with effect from 9 am.
The bourse told Foreland Fabrictech in a letter on Monday that the company continues to be in breach of many listing rules, such as failing to hold annual general meetings and issue annual reports for the financial years ended Dec 31, 2016, 2017 and 2018. It also does not have a properly functioning board and did not submit any acceptable trading resumption proposal.
Furthermore, since Oct 24, 2018, the board has been saying that the company intends to seek shareholders' approval to expand the current business to include food processing, to be funded by a convertible loan of S$1.4 million obtained in February 2019. But to date, no memorandum of understanding or binding agreement has been announced, said SGX.
The bourse also pointed out that given the company’s insolvent financial position, it is unlikely that the loan will be enough for the firm to acquire a new business or even operate as a going concern.
"The company has been given ample opportunities to submit its resumption proposal and comply with listing rules, following the Exchange’s letter of Jan 16, 2018 and Nov 14, 2018, respectively," said SGX.