KUALA LUMPUR (Oct 19): Plastic parts manufacturer Asia Knight Bhd, which fell into Practice Note 17 (PN17) status in October last year, following a disclaimer of opinion issued on its financial statements ended June 30, 2014 (FY14), is seeking more time to submit its regularisation plan.

In a filing with Bursa Malaysia today, Asia Knight said it has submitted an application to the regulator last Friday (Oct 16), for a proposed extension of time of up to five months from Oct 31, 2015 to Mar 30, 2016, to submit its regularisation plan.

“Such application will therefore be pending a decision to be made by Bursa Securities,” it added.

In its proposed regularisation plan submitted to Bursa Securities dated Oct 13, Asia Knight said it had entered into a conditional share sale agreement to acquire construction company PA Builders Sdn Bhd for RM75 million, to be satisfied via RM5 million cash and 350 million new Asia Knight shares, at an issue price of 20 sen each.

In return, the vendors agreed to warrant to Asia Knight that the profit after tax of PA Group for the financial years ending July 31, 2016 and 2017, shall not be less than RM8 million per year.

The proposed acquisition will allow Asia Knight to venture into the construction business and help to improve the financial performance of the group and to enhance its shareholder value.

Asia Knight added that without the proposed buy, it would not be able to regularise its financial position and would be delisted, given its PN17 status.

Asia Knight's shares were not traded today. They closed at 39 sen on Oct 13, with a market capitalisation of RM22.67 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)