Cliq to be liquidated, SC rejects request for deadline extension

KUALA LUMPUR: Cliq Energy Bhd will be liquidating the company and returning the monies to the entitled shareholders following the Securities Commission’s (SC) decision to reject its request for a deadline extension.

The oil-and-gas based special purpose acquisition company (SPAC) said the request for a deadline extension to acquire its qualifying asset was rejected by the SC via a letter yesterday, in which the regulator said “it would not consider an extension of time”.

This was in reply to the company’s letter to the regulator on Feb 15, seeking the extention.

Cliq has a three-year deadline to acquire a qualifying asset, which means the company has to acquire the asset by April 9.

“The company has received the official response from the SC via letter dated Feb 24, to the effect that the SC has decided that they are unable to accede to the company’s request for an extension.

“The company will soon be resolving the process towards its liquidation and returning monies in the Trust Account to the entitled shareholders according to the applicable laws and rules,” it said in an announcement to Bursa Malaysia.

SPACs are cash shells that raise money to make acquisitions, with the end-goal of adding value to the newly-acquired asset and to eventually see significant returns for shareholders.

Earlier in February, Maybank Investment Bank Bhd (Maybank IB) withdrew from its advisory role to the company in relation to the proposed acquisition and proposed rights issue with warrants effective Feb 6.

The resignation letter from Maybank IB came after the SC had returned Cliq’s application for its maiden acquisition a week earlier.

The SC had said it was unable to proceed with its review on Cliq’s acquisition proposal as it has yet to receive certain information and documents.