KUALA LUMPUR: Bursa Securities Bhd yesterday classified Scan Associates Bhd as a Guidance Note 3 (GN3) company after the High Court dismissed the company’s application for further injunction to restrain the regulator from classifying it under that category.

In a statement yesterday, Bursa Securities said the action was taken in accordance with the ACE Market Listing Requirements (LR) of Bursa Securities.

The information technology security solutions provider is the fourth company to be admitted to Bursa’s GN3 list after AsiaEP Resources Bhd, Cybertowers Bhd and R&A Telecommunication Group Bhd.

“The Kuala Lumpur High Court today (yesterday) has dismissed the company’s application for further injunction. As such, Bursa Securities today classifies Scan Associates as a GN3 company effective May 18, 2015,” Bursa Securities said.

“We would like to emphasise that we will continue to monitor the progress of Scan in respect of its compliance with the ACE Market LR,” it added.

Presiding judge Abu Bakar Jais delivered the judgement in chambers yesterday. The case management for the suit will be heard on June 1.

Yesterday, Scan Associates executive director Mak Siew Wei said the company’s board of directors will discuss whether to appeal the High Court’s decision.

“On our part, the company will consider to appeal against the (High Court’s) decision in the interests of our shareholders,” he told The Edge Financial Daily outside the court after the decision was delivered.

“Based on what our auditor told us, and another auditor that we had engaged with, we do not (fall under GN3 status),” said Mak, who owns a 6.19% stake in Scan Associates.

On May 8, Bursa Securities had issued a directive to Scan Associates to announce that the company had triggered rules 2.1 (b) and (c) of GN3 based on the company’s fourth-quarter results ended December 2014.

Scan Associates had then appointed Messrs Lim, Chong, Phang & Amy to file a lawsuit against Bursa Securities because the company disagreed with the directive issued by the regulator and to seek damages from the regulator.

Scan Associates was granted an ad interim injunction by the High Court on May 11 to restrain Bursa Securities from implementing the classification on the company.

Scan Associates (fundamental: 0; valuation: 0.3) shares closed unchanged at five sen yesterday, with 35.4 million shares changing hands. It was the top most active stock on Bursa, with a market capitalisation of RM10 million.

This article first appeared in The Edge Financial Daily, on May 19, 2015.