SCAN Associates resumes trading in the afternoon

by **Cals** Thu 19 May 2016, 23:47

SCAN Associates resumes trading in the afternoon

By theedgemarkets.com / theedgemarkets.com | May 19, 2016 : 1:11 PM MYT

KUALA LUMPUR (May 19): Trading in the shares of SCAN Associates Bhd, a Guidance Note 3 (GN3) and Practice Note 17 company, will resume in the afternoon session today, after it has decided not to apply to Bursa Securities for an extension of time to submit a plan to regularise its financial condition.

Trading in SCAN shares on the ACE Market of Bursa Malaysia was halted in the morning session, following the announcement yesterday (May 18). The stock closed 4 sen yesterday, bringing a market capitalisation of RM7 million.

In a filing with Bursa today, SCAN said pursuant to Rule 8.04(5)(a) and (b) of Bursa's listing requirements, the regulator will stop trading of the ICT security solutions provider’s securities on the sixth market day, upon notification of suspension and de-listing by Bursa.

However, the company has a right to appeal against the de-listing.

Yesterday, SCAN announced that majority of its board members have decided not to apply for an extension of time to submit its regularisation plan and uplift its GN3 status.

"The stigma of the company’s GN3 status has caused a loss of business and is a deterrence for clients to engage SCAN... The implementation of the proposed regularisation plan (also) involves high cost and risk.

"In the absence of a listing status, the company can still carry out its business by taking care of the essential expenses, like payroll and statutory commitments," it said.

The board also views the company as unable to afford costs associated with the proposed regularisation plan.

SCAN also said in the past 12 months, it has been in ongoing discussions to seek avenues to regularise its account, as well as exploring various options such as self-regularisation, or a reverse take-over of the company by a white knight to regularise its financial condition.