By EMILYN YAP
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POOR market sentiment is slowing Transcu Group's compliance placement exercise and trading in the counter will stay suspended until the placement is complete, said the company yesterday.
Shares of the Japanese biotech group, which underwent a reverse takeover (RTO) deal with Eng Wah Organization, have been suspended since Nov 14.
The RTO had led to a loss of public float and Transcu is conducting a compliance placement exercise to comply with Rule 210 (1)(a) of the Singapore Exchange's listing manual, said the company. The rule states that for a company to maintain its listing status, at least 15 per cent of its issued share capital must be held by public shareholders.
However, bearishness in equity markets is delaying the process. Transcu said yesterday that it is still working on the compliance placement and trading in its shares will remain suspended until the placement is completed.
Transcu had entered into a placement agreement with Lim & Tan Securities in May last year but both parties mutually agreed to terminate it last month.
No reason was given for the termination, and BT understands that Transcu could now be looking for strategic investors independently. The company could raise as much as $74 million by placing up to 148 million shares at up to 50 cents each.
Transcu sunk into a net loss of US$6.76 million for the second quarter ended Sept 30, from a net gain of US$10.9 million a year ago.
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