KUALA LUMPUR (Aug 11): Carzo Holdings Bhd (KL:CARZO) faces potential delisting after it failed to acquire a new core business since exiting its fresh fruits and fruit products distribution operations nine months ago.

The company has received a notice from Bursa Securities asking for written representations on why a suspension and delisting should not be imposed, said Carzo in a bourse filing on Monday.

The notice was issued due to the company's failure to comply with Rule 6.06(2) of the LEAP Market Listing Requirements — to acquire a new core business within nine months from its announcement on cessation of its core business.

“The company wishes to highlight that in the event Bursa Securities decides to delist the company, the securities of the company shall be removed from the official list of Bursa Securities on a date specified by Bursa Securities,” said Carzo.

The company has been in the red for two consecutive financial years. It incurred a net loss of RM6.55 million for the financial year ended June 30, 2024 (FY2024) and a net loss of RM18.89 million for the 18-month FY2023 period.

After failed efforts to turn around its core fresh fruits and fruit products distribution business, Carzo announced its immediate cessation in November last year.

Shares in Carzo were last traded on March 17, when it closed at 39.5 sen, valuing the company at RM37.7 million.