Huan Hsin receives notice to delist; to provide exit offer
SINGAPORE (Dec 19): Huan Hsin, the electronics contract manufacturer, has today received a notice to delist from the Singapore Exchange (SGX) for failing to meet its profitability and market capitalisation requirements on the Mainboard of SGX.
SGX also ordered Huan Hsin to advice on an exit offer proposal within one month.
On Mar 5, 2014, the group was placed on the watch-list under the financial exit criteria and was required to meet the criteria by Mar 4, 2016, to be removed from the watch-list.
Subsequently, the group was granted three extensions of time to meet the financial exit criteria on Mar 11, 2016; May 3, 2017; and Mar 2, 2018, respectively.
Upon the third extension granted on Mar 2, 2018, SGX informed the group that the extension to comply with the financial exit criteria by Mar 4, 2019, would be the final extension.
This extension was also granted upon the group achieving certain milestones, which included, inter alia, a condition that the group submit a reverse takeover (RTO) application and circular to the SGX by May 30, 2018.
However, the group’s reverse takeover deal was terminated on Aug 14, 2018. Hence, it later sought to extend the RTO application deadline to Sept 28, 2018.
In its latest 3Q18 results, Huan Hsin reported that losses widened by 39% to $3.47 million, compared to a loss of $2.49 million in 3Q17. Revenue was 51% lower y-o-y at $3.69 million.
As at 3.50pm, shares in Huan Hsin are trading at 1.5 cents, and will continue to trade until 5pm on Jan 18, 2019. After which, trading will be suspended from 9am, Jan 21, 2019, until completion of the exit offer. Upon that, the group will be delisted.
