SINGAPORE - No Signboard Holdings' chief executive Lim Yong Sim inadvertently instructed the company's broker to buy back shares of the seafood restaurant operator during a trading restriction period, the company said on Sunday (Feb 3) in response to a Singapore Exchange query.
The company said it held its annual general meeting last Thursday morning (Jan 31) to approve the company's share buyback mandate.
Mr Lim later instructed the company's broker, UOB Kay Hian, to queue to buy the shares at a price of up to $0.14 each. By 12.12pm last Thursday, about 1.07 million shares were purchased.
"This was an honest mistake on the part of Mr Lim, as he did not notice that the share purchase at prices of up to $0.14 exceeded the 5 per cent cap above the average closing price of the last five days permitted under the share buyback mandate of $0.1226 as at 31 January 2019,'' the company explained. Last Thursday, the stock surged nearly 24 per cent to $0.15, prompting the SGX query and soon after, a trading halt from the restaurant operator.
As the company had not held its its audit committee and board meetings to approve its results for the three months ended Dec 31, 2018, the shares purchase was carried out during the black-out period, during which dealing in the company's securities was restricted.
"In light of the above, the share purchase has inadvertently resulted in two breaches, that is, dealing in the shares of the company during the black-out period and the purchase of shares at a price which exceeded the share price cap," the company said.
In the wake of the breaches, No Signboard's sponsor, RHT Capital, has directed Mr Lim to attend directors' trainings to re-familiarise himself with the listing rules and other regulatory requirements. In addition, the company has been directed by the sponsor to develop and immediately implement a comprehensive internal policy and procedure on the share buyback process.
Shares in No Signboard will resume trading on Monday.