SINGAPORE - Paper products maker Nippecraft has received an in-principle approval from the Singapore Exchange (SGX) to transfer the company's listing from the SGX mainboard to the Catalist board.

In a filing with the SGX on Thursday (May 3), Nippecraft said that it had received the in-principle approval from the SGX on Wednesday. The proposed transfer is subject to a number of conditions, including compliance with the listing requirements of the SGX and shareholders' approval being obtained.

If the transfer is successful, Nippecraft will be removed from the SGX financial watch list. It was put on the watch list four years ago on March 5, 2014 - for posting three straight years of losses and having a market cap that fell below S$40 million.

In a separate filing with the SGX on Thursday, Nippecraft said that it has been granted an extension of time of up to four months to meet the requirements by July 1, 2018, for its removal from the watch list.

For fiscal 2017, Nippecraft had made a net profit before tax of US$97,000, but did not meet the market cap requirement to exit the watch list as its average daily market cap over the last six months did not exceed S$40 million. As at Thursday, Nippecraft's market cap stood at S$14.4 million.

Nippecraft said: "The board believes that the market cap of the group better resembles that of the companies on the Catalist. In addition, the board is of the view that the proposed transfer and listing on the Catalist will position the company appropriately and better allow the company to attract investors in the future."