Smartflex gets further extension to meet listing rules

Smartflex Holdings has received approval from the Singapore Exchange (SGX) for a further two-month extension to make an acquisition that will meet requirements for it to continue to be listed, as well as a waiver of escrow requirements to continue its operations.

The Catalist-listed firm said it had sought the extension to Sept 19 to give it enough time to seek shareholders' approval for the proposed acquisition of what it said is a profitable business in Singapore's veterinary industry.

It will convene an extraordinary general meeting on July 26 to seek shareholders' approval, after lodging a circular on June 29 about the proposed acquisition, it said in an SGX filing on Thursday.

The proposed acquisition is expected to be completed by the end of next month. The company was previously given a six-month extension ending July 19 to complete the acquisition.

It also received approval to waive escrow requirements and draw down $198,000 of its escrow funds for the company's expenses.

Smartflex said the company's existing cash and bank balances are not sufficient to cover its projected day-to-day operating expenses for the three-month period up until the proposed acquisition is expected to be completed.

It added that if it cannot complete the proposed acquisition, it will be delisted and a cash exit offer will be made to shareholders.

Smartflex shares last traded on July 6, closing at 21 cents.

A version of this article appeared in the print edition of The Straits Times on July 14, 2018, with the headline 'Smartflex gets further extension to meet listing rules'. Print Edition | Subscribe