SGX to suspend M Development from trading; company has 'no business operations'

The company has zero revenue from operations, and consists wholly or substantially of cash or short-dated securities.
The company has zero revenue from operations, and consists wholly or substantially of cash or short-dated securities.PHOTO: REUTERS

SINGAPORE - M Development, an investment holding firm on the exchange operator's Watchlist for risky companies, will be suspended from trading from Sept 12.

M Development has been deemed a "cash company" by the Singapore Exchange as it failed to recommence its trading business by Dec 31 last year.

The company has zero revenue from operations, and consists wholly or substantially of cash or short-dated securities.

M Development shares will be suspended from Sept 12. In other words, trading will continue until 5.05 p.m. on Sept 11 and be suspended thereafter.

The suspension will remain in force until the company has a business that can satisfy SGX requirements for a new listing.

Upon completion of the disposal of its operations and/or assets, M Development must place 90 per cent of its cash and short-dated securities in an escrow account. It must also provide monthly valuations of its assets and utilisation of cash, and quarterly updates of milestones in obtaining a new business to the market via SGX filings.

M Development has up to 12 months to meet the requirements for a new listing. If it fails, the SGX will proceed to remove it from the Official List and the firm must provide an exit offer upon delisting.

M Development was placed on the Watchlist in June for failing to meet the minimum trading price rule.