KUALA LUMPUR: Tricubes Bhd, whose share price took a nosedive yesterday, will file an appeal against Bursa Malaysia’s decision to reject its regularisation plan, said its CEO Khairun Zainal Mokhtar.

“We plan to seek clarification from Bursa the soonest possible [on the reason for rejection],” he told The Edge Financial Daily, adding that Tricubes is in discussion with advisers to enhance its regularisation plan.

Tricubes’ share price plunged seven sen or 70% to its historical low of three sen. News that Bursa has rejected the IT-based company’s regularisation plan and is on the verge of being delisted from the stock exchange sparked heavy selling on the counter with 25.94 million shares changing hands.

In a press statement yesterday, the company pointed out the rejection by Bursa would only affect the “listing status” but did not impact the company’s ability to carry out its business as usual.

According to Khairun, Tricubes has developed a diversified income stream over the past one year. Hence, the company’s regularisation plan is made up of different business components of which the 1Malaysia email project is only one part.

“With a diversified revenue stream based on technology that we have either developed or purchased, we feel optimistic for the future,” said Khairun, who is the single largest shareholder holding a 30.16% equity stake in Tricubes.

Tricubes has secured a contract to offer a service for the payment of police summonses over automated teller machines. “We have signed up with a bank and will be offering the service by late August this year,” Khairun said.

Another business is Tamtamcrm, which is a cloud-based customer relationship management application. On the 1Malaysia email project Tricubes secured in April last year, Khairun said it was getting “a lot more traction” with government agencies.

“We have submitted proposals for managing their electronic bill presentment [electronic delivery]. It has taken a bit more time than predicted to acquire these billers,” he added.

The 1Malaysia email project was perceived to be a “lifeline” thrown to the company, which would be the core of its regularisation plan. Tricubes shares surged to a six-year high of 32.5 sen from four sen in April last year when it first announced the email project.

A few substantial shareholders, for instance Commence Technology Ventures Sdn Bhd, Mayban Venture Capital Company Sdn Bhd and Heitech Padu Sdn Bhd, took advantage of the share price rally to pare down their stake in the company.

The email project was expected to contribute RM39 million to gross national income by 2015. The company planned to invest RM50 million in the project over the next 10 years.

Tricubes has been loss-making since the financial year ended March 31, 2010. For FY12, its net loss expanded to RM2.15 million or 1.61 sen per share compared with a net loss of RM712,290 or 0.54 sen per share the year before.

Revenue was marginally higher at RM16.3 million against RM15.9 million. However, in its 4Q ended March 31, the company posted a net profit of RM790,079 against RM481,502 previously. Revenue nearly doubled to RM8.21 million from RM4.29 million.

This article appeared in The Edge Financial Daily July 5, 2012.