Shares in mainboard-listed YuuZoo Corporation are suspended from trading, the Singapore Exchange (SGX) said yesterday evening (Monday).
March 19 was the deadline, under a notice of compliance from the bourse operator, for YuuZoo to disclose its auditors' opinion on certain items in its latest financial statements. But the auditors instead told YuuZoo and the SGX yesterday they could not make that call.
The latest blow comes after the online media company was hit with both queries and a notice of compliance from the SGX on March 5, over its unaudited results for the full year to Dec 31, 2017. Under especial scrutiny was an increase in fourth-quarter "other income" to $8 million, from $159,000 in the same period the year before. The firm later said that this involved a bargain purchase gain on assets.
The notice of compliance also flagged a higher balance of assets available for sale as at Dec 31 - to the tune of $54.2 million - and a corresponding sum of $38.4 million recognised in revenue.
YuuZoo was to have its auditors give an opinion on "the veracity and reasonableness" of these two items.
But the auditors have since said they were unable to obtain "sufficient appropriate audit evidence" to give an opinion as required.
Bermuda-incorporated YuuZoo was listed here in 2014 after a reverse takeover. It held a shareholder dialogue on March 7 - two days after getting the notice of compliance - amid concerns over issues such as disclosures on its financial performance.
YuuZoo's most recent results, out on March 1, showed an 84 per cent year-on-year earnings drop for the 12 months to $2.29 million, on a revenue of $62.18 million.
The SGX said yesterday that it was suspending trading in YuuZoo shares with immediate effect, "in the interest of maintaining a fair, orderly and transparent market".
"The suspension will be lifted when the Exchange is satisfied that the shares of the company can be traded on a fair, orderly and transparent basis," it added.
YuuZoo shares closed flat at 3.8 cents, before the announcement.