SINGAPORE (July 15): The Singapore Exchange has publicly reprimanded YuuZoo for breach of listing rules that required a company’s announcement to be balanced and fair.

The reprimand was related to an SGX announcement YuuZoo released on May 21 last year entitled “New Edison Investment Research report on YuuZoo sees significant upside on share price”.

The description on the SGXNet announcement page and the title of YuuZoo’s news release highlighted that Edison had put a fair value of up to $1.83 on YuuZoo’s share price which was the most optimistic valuation from a range of fair values contained in the report.

Among the breaches, SGX found that YuuZoo’s SGXNet announcement and news release were not balanced and fair as the company presented the most optimistic scenario of a fair value of up to $1.83 without sufficient qualification or explanation.

YuuZoo also did not consult Macquarie Capital (Singapore), its then compliance adviser, on the release of the SGXNet announcement.

Following May 21 and news release, YuuZoo’s share price rose on the two straight trading days to close at 29.5 cents on May 22 and 33.5 cents on May 25 with heavy volumes traded.

Prior to the announcement, YuuZoo shares had traded in a 21.5 cent to 23.5 cent range.

SGX says the company presented favourable possibilities as certainties or being more probable than they actually were and without sufficient qualification.

“Therefore, there was a risk that Edison’s projections and valuations could have been relied on by investors as if they were made by the company,” adds SGX.

YuuZoo shares closed 0.6% lower at 17 cents.