Aspen (Group) Holdings has retracted a statement it previously released on April 13, that it had entered into a master supply agreement with Honeywell International for a consideration of US$210 million ($281.64 million).
In a filing released on April 24, Aspen revealed that the announcements relating to Aspen Glove’s entry into the agreement with Honeywell were retracted due to a “communication oversight” between both parties.
The company claims that in the days leading up to the release of the announcements, its glove making subsidiary received what it believed to be the “final agreement” from Honeywell.
The glove subsidiary had also received written email instructions from Honeywell to issue an invoice for U$10 million to facilitate the first payment of the deposit in the event the agreement was fully executed.
Aspen believed that, in order to comply with SGX rules, it was necessary to disclose the key terms of the agreement.
Shares in Aspen (Group) were trading at a one-month high of 26.5 cents on April 9 before its previous announcement on April 13.
Shares were trading at 23 cents on April 13 and 14 before climbing to 25.5 cents on April 15, after the announcement was released on the SGX-ST.
In addition, Honeywell had not consummated the agreement on April 12.
Shares in Aspen closed 0.5 cent lower or 2.1% down at 23 cents on April 2.
