SINGAPORE - Jasper Investments said on Wednesday (July 24) that it possesses sufficient financial support to maintain the company as a going-concern, and that its shares should not be suspended.
This was in response to queries from the Singapore Exchange (SGX), which also asked the company to provide its board and audit committee's (AC) opinion on whether or not the company's risk management systems are "adequate and effective", to which Jasper said its board and AC believe it is.
Regarding its going-concern issue, the group said that it believes it can continue operating after accounting for revenue from works - expected to start in the "near term" - relating to marine transport projects. This is also based on its current financial year's cash flow budget and projected requirements.
Moreover, the group has written assurance from its major shareholder Polaris Nine that it would provide sufficient funding to meet the day-to-day compliance and operational costs for the current financial year if required.
Giving an update on a previously reported delay in its China infrastructure projects, the group said that the first deployment of vessels involved in the Guangdong-Hong Kong-Macao Greater Bay Area is expected to take place no later than Aug 31, barring unforeseen circumstances. The commencement of works will coincide with the vessel deployment.
Meanwhile, following a further check with Barten Construction & Trading, reclamation works for its Hong Kong International Airport project are expected to start in the third quarter or early part of the fourth quarter this year, barring unforeseen circumstances.
This is due to several administrative and logistical matters which need to be sorted out prior to the start of the project.
Barten, which Jasper has a collaboration with, is the designated operator for related logistics and transportation works in connection with reclamation works at the Hong Kong International Airport Project (Third Runway System).
Considering the upcoming works, Jasper's board said that suspending the group's shares would affect the group's ability to raise funds from capital markets to support its expansion and growth following the initial commencement of works.
The SGX had asked for the board's opinion on whether or not trading of the company's shares should be suspended as per listing rule 1303(3).
Jasper said its board had confirmed that all material information had been disclosed for the trading of the company's shares to continue in an orderly manner.
Jasper shares closed at S$0.006 on Tuesday, up 0.2 cent or 50 per cent, before the announcement was made. The group has been put on the SGX watch list since December 2018 for failing to meet the minimum trading price entry criterion.