November 29, 2020

SGX to delist BM Mobility, firm must make exit offer, Companies & Markets News & Top Stories

SINGAPORE (THE BUSINESS TIMES) – Mainboard-listed BM Mobility is to be delisted after the company failed to comply with conditions to be given an extension of time to resume trading, its judicial managers said in a Singapore Exchange (SGX) filing on Monday night (Sept 14).

The electric transport group received a notification of delisting from SGX that day, in which SGX noted that the company did not fulfil said conditions.

BM Mobility must now comply with Listing Rule 1309, which requires it or its controlling shareholder(s) to provide a reasonable exit offer for shareholders. It is requested to inform the bourse of the exit offer proposal “as soon as practicable but no later than one month from the date of the notification of delisting”, and provide updates on the status of the exit offer proposal.

On July 29, 2019, the company had requested a suspension in the trading of its shares under Listing Rule 1303(3), where the issuer is unable to continue as a going concern, or unable to demonstrate its ability to do so.

When suspended under that rule, an issuer must submit a proposal with a view to resuming trading within 12 months of the date of suspension, or risk being delisted.

On May 29, 2020, BM Mobility said that its interim judicial managers had received a non-binding confidential expression of interest from an online card and board game developer, distributor and operator in China for a potential restructuring exercise involving a transfer-of-listing exercise, and were engaging the potential investor in talks. It applied for an extension of time to observe its listing obligations.

On June 16, the company said it had been granted extensions of time until Aug 31 to sign an acquisition agreement, subject to its announcement of the signing of a definitive agreement for the said acquisition by that date. On Aug 31, BM Mobility said that no definitive agreement had been signed yet.

As BM Mobility did not submit a resumption proposal and no acquisition agreement had been signed by the deadline, it did not fulfil the conditions for the grant of extension of time, said SGX in its notification of delisting.

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