Yamada Green Resources calls for mandatory trading suspension

File picture of a mushroom cultivation base belonging to Yamada Green Resources.
File picture of a mushroom cultivation base belonging to Yamada Green Resources.PHOTO: YAMADA GREEN RESOURCES

SINGAPORE - Mainboard-listed Yamada Green Resources called for an immediate mandatory trading suspension in a pre-market filing around 7:30am on Wednesday (Sept 6).

Yamada, which is a major supplier of shiitake mushrooms with cultivation bases in China's Fujian province, had said late on Tuesday night (Sept 5) it would be asking for its trading halt to be converted into a voluntary suspension, and for a further extension of time of an aggregate of seven months to announce its full-year financial results and hold its annual general meeting.

It said the further extension was needed in view of a fire incident as announced on Monday night (Sept 4) in which certain finance documents and IT/computer hardware are likely to have been affected or destroyed.

Apart from the above and the reasons enumerated in the company's announcement of Aug 25, more time was also needed for the company's external auditors, BDO LLP, to perform additional audit works in relation to certain inconsistencies in the group's financial records and other audit queries relating to the group's financial statements for FY2017.

Yamada said the audit committee has also initiated an inquiry into the extent to which finance documents and it/computer hardware of the group are affected by the fire incident. It has also proposed to the board that, as an interim measure, oversight procedures be implemented in relation to cash balances in the bank accounts of the group, and this has been accepted by the board.

Shook Lin & Bok LLP has been appointed as the company's legal advisers to advise the board and the audit committee of the immediate measures and the actions to be taken in relation to the fire incident and the additional audit works, and moving forward, any other matter entrusted upon them by the board and/or the audit committee arising therefrom.

Yamada had on Aug 25 said it was applying for more time to file its results and hold its AGM as it had experienced high staff turnover in the finance team and because its external auditors needed more time to complete its procedures.

On Aug 11, the company flagged a loss for the fourth quarter and full year.

Its shares have been on a trading halt since Aug 31 and last traded at 33 Singapore cents on Aug 30.