KUALA LUMPUR (Jan 12): ACE Market-listed Guidance Note 3 (GN3) company G Neptune Bhd has cancelled its plan for a private placement exercise to raise some RM3 million to support its working capital.

In a filing with Bursa Malaysia, G Neptune said it will not proceed with the exercise announced three years ago, and is looking into formulating a plan to regularise its financial condition.

G Neptune said this came after the company slipped into GN3 status, after it triggered ACE Market Listing Requirement GN3 Paragraph 2.1(a) and (b).

Paragraph 2.1(a) will be triggered when shareholders' equity is 25% or less than issued and paid-up capital.

Paragraph 2.1(b) meanwhile will be triggered when a company incurred loss in any one full financial year after its listing, which is more than the amount of its shareholders' equity at the end of that financial year and the shareholders' equity is equal to or less than 50% of the issued and paid-up capital of the listed firm at the end of the financial year.

G Neptune had in January 2015 proposed a private placement of up to 86.63 million new shares or 30% stake of its existing paid up capital, to an independent third party investor.

G Neptune's shares were suspended from trading since Nov 8 last year.