Cymao triggers PN17 after external auditor’s opinion


  • Corporate News
  • Wednesday, 15 Jul 2020

Cymao Holdings Bhd said it would not be classified as a PN17 company due to the relief measures announced by Bursa on April 16.

KUALA LUMPUR: Cymao Holdings Bhd triggered the criteria under Practice Note 17 (PN17) of the Main Market listing rules after its external auditors, Messrs PKF, raised uncertainties about the company's ability to continue as a going concern.

The timber products company said on Wednesday PKF issued an unqualified audit opinion for the financial year ended Dec 31,2019 and also its shareholders’ equity on a consolidated basis was 50% or less 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), ” it said.

The company said it would not be classified as a PN17 company due to the relief measures announced by Bursa on April 16.

“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, ” it said.

To recap, affected listed issuers were granted relief from complying with the obligations under Paragraph 8.04 and PN17 of the Main LR from April17 to June 30,2021.

The relief measures will be available to the listed issuer if its shareholders’ equity on a consolidated basis is 25% or less of its share capital (excluding treasury shares) and such shareholders’ equity is less than RM40mil.

Another factor is that the auditors have highlighted a material uncertainty relating to going concern or expressed a qualification on the listed issuer’s ability to continue as a going concern in its latest audited financial statement and its shareholders’ equity on a consolidated basis is 50% or less of its share capital (excluding treasury shares).

The third factor is a default in payment by the listed issuer, its major subsidiary or major associated company and the listed issuer is unable to provide a solvency declaration to the exchange.

Hence, Cymao said it would not have to comply with the obligations pursuant to Paragraph 8.04 and PN17 for 12 months.

However, upon the expiry of the 12 month, the affected listed issuer must re-assess its condition and announce whether it continues to trigger any of the criteria in PN17.

If a company continues to trigger any of the criteria in PN17, it will then be classified as a PN17 listed issuer and it has to submit a regularisation plan to the relevant authorities within 12 months from the announcement.

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