Smartflex gets nod for time extension to meet listing rules, escrow waiver

The Singapore Exchange Centre along Shenton Way.
The Singapore Exchange Centre along Shenton Way.PHOTO: ST FILE

SINGAPORE - Smartflex Holdings has received approval from 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 that 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 the veterinary industry in Singapore.

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, the company said in a Singapore Exchange filing on Thursday (July 12).

The proposed acquisition is expected to be completed by end-August 2018. The company was previously given a six-month extension ending July 19 to complete the acquisition.

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

Smartflex said that the company's existing cash and bank balances are not sufficient for it 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 said the projected expenditure, which amount to 1.1 per cent of its escrow funds, is not material and is necessary to ensure the company can meet its continuing listing obligations as well as complete its acquisition.

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

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