Membrane manufacturer Memstar Technology asked to delist

SINGAPORE - Membrane manufacturer Memstar Technology has been asked to delist from the Singapore Exchange (SGX).

The company received a delisting notification on May 18, as it failed to meet requirements set by the bourse.

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.

However, Memstar announced in April that the deal had been terminated, as Longmen Group was facing fundraising challenges.

This means Memstar failed to meet the conditions for the time extension and will be delisted.

The company said in its exchange filing on Monday 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 June 20 (one month from the date of the delisting notification) until the exit offer is completed.

The company lifted a previous trading suspension on its shares after the announcement was released on Monday.