SINGAPORE - Q&M Dental Group on Tuesday (Sept 25) said the proposed delisting of its associated company Aidite (Qinhuangdao) Technology Co from China's National Equities Exchange and Quotations, or the New Third Board, is not part of a restructuring exercise, and that it will provide further details "as and when Aidite makes further announcements".
Aidite, the dental supplies manufacturing business in China, was spun off from Q&M Dental in 2016, and received approval to list on the New Third Board that year.
In response to queries by the Singapore Exchange (SGX), Q&M Dental said that Aidite had announced to the public that it was exploring "certain strategic business development opportunities" but did not provide details of such opportunities.
Said Q&M Dental: "The proposed delisting was proposed by Aidite in view of certain business development opportunities that arose which has no connection to the duration of the listing on New Third Board. The board is not in a position to disclose information not disclosed by Aidite in its own announcement."
As such, Q&M Dental said it will only disclose details of the business development opportunities when Aidite makes further announcements.
Asked by the SGX whether the company will be compensated for the shares issued to the PRC management for the listing of Aidite, Q&M Dental noted that the issuance of 4.66 million new shares to the PRC management, namely Aidite founders Li Hongwen and Li Bin, have not yet been made. It said it will make further announcement on this "as and when there is any material development".
The company added that it is not proposed that the profit guarantee will be reinstated after the proposed delisting, and that it is "satisfied with Aidite's recent performance and its business plans".
Shares in Q&M last traded flat at $0.505 apiece last Friday.