Highlight Bursa rejects High-5 regularisation plan, suspends share trade

by **Cals** Thu 07 Aug 2014, 01:03

Highlight Bursa rejects High-5 regularisation plan, suspends share trade

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 06 August 2014 18:59

KUALA LUMPUR (Aug 06): Bursa Malaysia has rejected High-5 Conglomerate Bhd’s proposed regularisation plan and will suspend trading of its shares effective from next Thursday.

This is the second proposed regularisation plan that Bursa has rejected this week. Bina Goodyear Bhd's plan was rejected on Monday.

The company will be delisted from the Main Board of Bursa on Sept 10, unless an appeal is submitted before Sept 5 against rejection of the regularisation plan and its de-listing.

Investors are advised they can withdraw their securities in the form of physical certificates from the Central Depository System (CDS) accounts maintained with Bursa Depository at any time after the securities have been de-listed.

The proposed regularisation plan was submitted to Bursa Malaysia in February

To recap, two investors – Covenant Equity Consulting Sdn Bhd and Suncsi Holdings Sdn Bhd – have injected RM 16 million into High-5 in July last year to address the company’s financial needs.

In return, the two will get RM 16 million worth of redeemable preference shares (RPS) of RM1 each, which are convertible into 160 million High-5 shares with a par value of 10 sen each plus 320 million free warrants.

A second round of funding, this time amounting to some RM 22 million, is in the pipeline to fund a possible shift of its factory operations to a new premise with cheaper rent as well as for equipment upgrades.