SINGAPORE (July 19): The Singapore Exchange (SGX) has for the second time rejected YuuZoo Networks Group’s request to lift its share trading suspension.
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This was in response to a Thursday request to SGX by YuuZoo to lift the trading suspension.
Explaining the rejection, SGX said YuuZoo had so far not complied with the notice of compliance (NOC) dated April 2, 2018 regarding the release of the findings of Ernst & Young Advisory on its revenue recognition from franchise sales.
SGX had also requested for a review of the veracity of certain receivables of the group, In addition, investigations by the Commercial Affairs Department (CAD), the white collar crime division of the Singapore Police Force, are still ongoing.
"Pending the compliance with the NOC by the company and clarity on these matters, existing shareholders and potential investors are not able to trade in the shares of the company on an informed basis. On this basis, the trading suspension will continue," says SGX in its Friday night filing.
To recap, trading of shares in YuuZoo was suspended since March 19, 2018, after its auditors failed to obtain appropriate evidence to support the veracity and reasonableness of two items in its consolidated financial statements.
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In its Thursday filing, YuuZoo’s board said maintaining the suspension was “unjustified and deeply damaging to YuuZoo shareholders”.
According to YuuZoo, when the trading suspension was imposed, SGX had said the ban would be lifted once it was "satisfied that the shares of the company can be traded on a fair, orderly and transparent basis”.
YuuZoo also said it had provided the market with all the information SGX had requested and believed shareholders should be able trade on a fair, orderly and transparent basis.
Furthermore, YuuZoo said it had asked SGX if it needed to provide any information that the regulator thought could impact the value of the stock.
