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04-03-2017, 11:30 AM
Compact Metal has been served with the Notification of delisting yesterday.
http://infopub.sgx.com/FileOpen/Notifica...eID=442186
Salient points:
1) The board of directors (the “Board”) of the Company would like to inform the shareholders that the Company has received a notification from SGX-ST on 3 March 2017. In this notification, the SGX-ST has informed the Company that its shares would be delisted from SGX-ST on 3 April 2017 and the Company has to make arrangements for the return of share certificates to shareholders.
* The company and its shareholders get a one month advance notice before delisting so that they can take the necessary measures with regards to their shareholdings.
2) Pursuant to Listing Rule 1306, the issuer or its controlling shareholder(s) must comply with Listing Rule 1309 which provide inter-alia an exit offer to will be made available to the shareholders. The Company will continue to update shareholders on the exit offer.
* Now this is where it gets interesting. Compact Metal has a Net Cash balance of $28.9 million (Cash - ST debt - LT debt) and a market cap of $24.4 million as on the 3rd March. The NAV is $0.0539 per share vis-a-vis a share price of $0.021. I think I would hold and wait for the exit offer.
3) Trading of the Company’s securities will continue until 5.05 pm on 31 March 2017 and remains suspended from 9 am on 3 April 2017 until completion of exit offer.
* I guess people who rushed to sell yesterday at prices as low as $0.018 per share would have assumed that trading would be suspended with immediate effect. The fact that there were buyers ready to pick up the almost 5,500 lots offered at prices ranging from $0.018 to $0.022 indicates that they know the delisting process better!
The queries I still have:
1) What happens to the shares you hold (if any) once the company is delisted on the 3rd April 2017.
2) Does the company have to go through an IPO to get relisted once again on the SGX or is there some other process of relisting.
http://infopub.sgx.com/FileOpen/Notifica...eID=442186
Salient points:
1) The board of directors (the “Board”) of the Company would like to inform the shareholders that the Company has received a notification from SGX-ST on 3 March 2017. In this notification, the SGX-ST has informed the Company that its shares would be delisted from SGX-ST on 3 April 2017 and the Company has to make arrangements for the return of share certificates to shareholders.
* The company and its shareholders get a one month advance notice before delisting so that they can take the necessary measures with regards to their shareholdings.
2) Pursuant to Listing Rule 1306, the issuer or its controlling shareholder(s) must comply with Listing Rule 1309 which provide inter-alia an exit offer to will be made available to the shareholders. The Company will continue to update shareholders on the exit offer.
* Now this is where it gets interesting. Compact Metal has a Net Cash balance of $28.9 million (Cash - ST debt - LT debt) and a market cap of $24.4 million as on the 3rd March. The NAV is $0.0539 per share vis-a-vis a share price of $0.021. I think I would hold and wait for the exit offer.
3) Trading of the Company’s securities will continue until 5.05 pm on 31 March 2017 and remains suspended from 9 am on 3 April 2017 until completion of exit offer.
* I guess people who rushed to sell yesterday at prices as low as $0.018 per share would have assumed that trading would be suspended with immediate effect. The fact that there were buyers ready to pick up the almost 5,500 lots offered at prices ranging from $0.018 to $0.022 indicates that they know the delisting process better!
The queries I still have:
1) What happens to the shares you hold (if any) once the company is delisted on the 3rd April 2017.
2) Does the company have to go through an IPO to get relisted once again on the SGX or is there some other process of relisting.
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