KTL Global, which is set to delist from the Singapore Exchange (SGX), cannot make an exit offer to shareholders due to a lack of financial resources.
The company has also reached out to the controlling shareholder to ask about the possibility of making an exit offer, but said that shareholder has expressed no interest or intention to do so, it said in a bourse filing on Friday (Sep 20) evening.
Shares of KTL Global last traded at S$0.116 on Aug 6, 2021, before the counter went into a trading halt. The company subsequently applied for the halt to be converted into a voluntary suspension.
The voluntary suspension came after the branding, operations and procurement company undertook an independent review to look into transactions of its subsidiary Bluegas with four branding, operations and procurement customers in China.
In a bourse filing on May 15, KTL Global announced that the Singapore Exchange Securities Trading will proceed to delist the company. This came as KTL Global failed to meet the requirement of the listing rule and exit the watch list even after being given an extension by the SGX till Jun 30.
The company was placed on the watch list on Dec 4, 2019. Companies are placed on the watch list if they record losses for the three latest consecutive financial years, and have an average daily market cap of under S$40 million over the last six months.
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As the company will be delisted, KTL Global or its controlling shareholder must provide a reasonable exit offer to shareholders.
In Friday’s update, the company said it is experiencing “severe financial distress” which has adversely affected its ability to manage and report financials effectively.
Due to the company’s dire financial situation, the board has also determined that voluntary liquidation is not an option as it lacks the necessary funds to engage the professionals required for such a process.
KTL Global does not even have the funds to hire accounting professionals, it said, to provide SGX or shareholders with the latest unaudited financial results as at Jun 30, 2024.
According to the company’s latest unaudited financial results for the nine months ended Mar 31, 2023, it had about S$24,000 in cash and bank balances and net liabilities of about S$2.2 million.
As at Jun 30, the company has about S$650 in cash and bank balances. Neither the company nor its subsidiaries have any ongoing operations.
KTL Global said if it becomes wound up by creditors or for any other reason, it will keep shareholders informed of the developments.
