KUALA LUMPUR (July 15): Cymao Holdings Bhd said today it has triggered Bursa Malaysia's Practice Note 17 (PN17) prescribed criteria after the wood products manufacturer's external auditors Messrs PKF issued an unqualified opinion on material uncertainty relating to the company's status as a going concern.

In a statement to the bourse today, Cymao said it will, however, not be classified as a PN17 company based on Bursa's PN17 relief measures.

Cymao said PKF's unqualified opinion, which involves Cymao's audited financial statements for financial year ended Dec 31, 2019, took into account Cymao shareholders’ equity on a consolidated basis, which is less than 50% of its share capital, excluding treasury shares.

"Cymao's shareholders’ equity on a consolidated basis as at March 31, 2020 is 49% of its share capital (excluding treasury shares).

"For the avoidance of doubt, Cymao will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to Paragraph 8.04 and PN17 of the Main LR (Main Market listing requirements) for a period of 12 months from the date of this announcement.

"Cymao will re-assess its condition and announce whether it continues to trigger any of the criteria in PN17 of the Main LR upon the expiry of the 12 months from the date of this announcement," Cymao said.

Cymao's share trade has been suspended since 9:47am today in conjunction with the announcement. In separate Bursa filings today, Cymao said trading in its shares will resume from 2:30pm today.

Prior to the suspension, Cymao shares' latest closing price was 18 sen, which gives the company a market capitalisation of RM13.2 million.

Bursa's PN17 relief measures were first announced on April 16, 2020 to assist listed companies affected by the Covid-19 pandemic.

In a statement then, Bursa said companies that trigger certain criteria under the PN17 and Guidance Note 3 (GN3) classification for firms with unsatisfactory financial condition will not be classified as a PN17 or GN3 listed issuer and will be accorded relief from complying with the obligations for 12 months from the date of triggering the specified criteria.

"The listed issuer will only be required to make an immediate announcement that it has triggered the specified criteria and the relief provided.

"If, after the 12-month period, the affected listed issuer triggers any of the criteria in PN17 or GN3, it will be classified as such and must comply with all the obligations under paragraph/Rule 8.04 and PN17/GN3 of the listing requirements," Bursa said.