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YuuZoo trading suspension to continue: SGX RegCo
TRADING in social commerce company YuuZoo will not resume for now, the Singapore Exchange Regulation (SGX RegCo) said on Friday in response to the mainboard-listed counter's request to lift the trading suspension.
SGX RegCo said YuuZoo has not complied with the notice of compliance (NOC) issued by the regulator on Apr 2, 2018. The NOC was about the release of the findings of Ernst & Young Advisory on the company's revenue recognition from franchise sales. The SGX has required a review of the veracity of certain receivables of YuuZoo as well.
Further, Commercial Affairs Department investigations against YuuZoo are ongoing, the bourse regulator responded to YuuZoo's second request to have its trading suspension lifted.
SGX RegCo said: "Pending the compliance with the NOC by the company and clarity on these matters, existing shareholders and potential investors are not able to trade in the shares of the company on an informed basis. On this basis, the trading suspension will continue."
Trading of the company's shares was suspended from March 19 last year. But YuuZoo said in a statement on Thursday that it believes continuing to keep the suspension in place is "unjustified and deeply damaging" to its shareholders, and has therefore asked the SGX RegCo to lift the trading suspension imposed 16 months ago.
In March, the company shut all its Singapore-based subsidiaries and terminated all its Singapore-based employees, a move it said was a direct consequence of its trading suspension.
The company blamed the share suspension, police investigation and other issues for its woes.