Thursday 28 Mar 2024
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KUALA LUMPUR: Scan Associates Bhd, which slipped into Guidance Note 3 (GN3) status in May this year, has withdrawn its lawsuit against Bursa Securities with costs of RM30,000 paid to the regulator and with no liberty to file afresh.

In a filing with Bursa Malaysia yesterday, Scan Associates said it feels the withdrawal of the suit is in the best interest of the company.

On May 8, Bursa Securities 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 of financial year 2014 (FY14). Firstly, it incurred a loss of RM7.1 million in its FY14, which exceeded its shareholders’ funds of RM6.2 million. Secondly, its aggregate losses for two consecutive financial years exceeded its shareholders’ funds.

Scan Associates had then appointed Messrs Lim, Chong, Phang & Amy to file a lawsuit against Bursa Securities because the company disagreed with the directive 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, which was later dismissed by the Kuala Lumpur High Court.

Scan Associates shares closed up 11.11% to five sen yesterday, bringing a market capitalisation of RM10 million.

 

This article first appeared in digitaledge Daily, on August 28, 2015.

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