Memstar Technology - deemed a cash company after selling its membrane manufacturing business - has been asked to delist from the bourse.
The company lifted a previous trading suspension on its shares after the announcement was released yesterday, resulting in its stock price tanking almost 90 per cent to 0.1 cents.
The company said it received a delisting notification on May 18, as it failed to meet requirements set by the Singapore Exchange (SGX).
In November, the exchange granted Memstar Technology, in its capacity as a cash company, a six-month extension to meet the requirements for a new listing.
This was subject to the firm submitting an application for a proposed reverse takeover of Longmen Group, a natural gas developer, by Feb 25.
Memstar had proposed to acquire all of Longmen Group for US$420 million (S$580 million) in an all-share deal last December.
The company was also required to provide quarterly updates of key milestones on its progress towards completing the proposed reverse takeover by May 31.
However, Memstar announced last month that the deal had been terminated, as Longmen Group was facing fund-raising challenges. This meant Memstar failed to meet the conditions for the time extension and will be delisted.
In response to a query from the SGX, Memstar said it is in talks to attempt to recover the US$5 million deposit paid for the deal, and will update shareholders of any material developments.
The company also said in an exchange filing yesterday that it will provide a "reasonable exit offer" to shareholders, in accordance with SGX listing rules.
The exchange will grant Memstar an extension of time to make such an offer.
It will have to inform the SGX of its exit offer proposal "as soon as practicable", and is required to do so no later than one month from the date of the delisting notification.
Trading in the company's shares will continue until 5.05pm on June 17. Trading will be suspended from 9am on June 20 (one month from the date of the delisting notification) until the exit offer is completed.