Scan Associates takes action against Bursa

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KUALA LUMPUR (May 12): Scan Associates Bhd fell as much as 25% after the ICT security solutions provider said Bursa Malaysia had placed the firm under the Guidance Note 3 (GN3) category.

Yesterday, Scan (fundamental: 0; valuation 0.3) said Bursa Malaysia had last Friday placed the firm under the GN3 list based on its fourth quarter net loss. Scan said it was taking legal action against Bursa Malaysia because it disagreed with the bourse regulator's decision.

Today, Scan shares fell as much as 1.5 sen to 4.5 sen at 11.51am with some 10 million shares done.

At 12.30pm, the stock settled at 4.5 sen for a market capitalisation of RM9 million.

The stock's share trade was earlier suspended from 9am to 10am in conjunction with the announcement.

Yesterday, Scan said it had appointed Messrs Lim, Chong, Phang & Amy to take legal action against Bursa Malaysia.

Scan had filed the suit last Sunday (May 10) against Bursa Malaysia to nullify the regulator's directive. Scan is also seeking damages from Bursa Malaysia.

Scan said the High Court had yesterday (May 11) heard the company’s application and granted an injunction to prevent Bursa Malaysia from reclassifying the company.

“The ad interim injunction will be enforceable and binding until the High Court makes a decision at 4pm on May 18, 2015,” Scan said.

Scan reported a net loss of RM1.1 million in the fourth quarter ended December 31, 2014 from a net loss of RM69,000 a year earlier.

Full-year net loss widened to RM7.1 million against a net loss of RM2.63 a year earlier.

(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.)