KUALA LUMPUR (May 18): ACE Market-listed SMTrack Bhd (KL:SMTRACK) said Bursa Malaysia has rejected its application for a waiver from having to comply with the obligations of its classification as an affected listed issuer with insignificant operations under the ACE Market Listing Requirements (AMLR).

The radio frequency identification solutions provider originally triggered the Rule 8.03A(2)(b) criteria for insignificant operations following the release of its consolidated results in late February. Based on its unaudited financial statements for the 12-month financial period ended Dec 31, 2025, the company recorded a yearly revenue of RM2.992 million, representing less than 5% of its share capital.

Subsequently, SMTrack submitted an application seeking a waiver from complying with Rule 8.03A(3), which outlines the mandatory restructuring obligations and penalties imposed on affected corporations. Following Bursa's rejection of the waiver, the company has officially been designated an affected listed issuer.

At the same time, SMTrack announced it has also triggered the Guidance Note 3 (GN3) criteria for financially distressed companies listed on the ACE Market, similar to the Practice Note 17 (PN17) classification for companies listed on the Main Market.

The company fell into GN3 after its aggregated losses for the 18 months ended Dec 31, 2024 (18MFY2024) and 18 months ended June 30, 2023 (18MFY2023) totalled RM46.76 million, exceeding its shareholders' equity of RM45.73 million as at end-December 2024.

The GN3 status was also triggered due to its escalating losses, with its 18MFY2024 net loss of RM30.95 million being more than 50% higher than the RM15.81 million it incurred in 18MFY2023. Its shareholders’ equity of RM45.73 million also fell below 50% of its share capital of RM114.86 million at end-December 2024.

Following the waiver rejection, the company has 12 months to submit its regularisation plan and secure Bursa Malaysia’s approval, failing which its securities may be suspended and eventually delisted.

The board said it is taking all necessary actions to formulate a regularisation plan to address its GN3 and affected listed issuer status.

SMTrack has been in the red since it was listed in 2011. It has shifted its financial year-end several times, with the most recent change in November last year, where it pushed its financial year-end to end-June from end-December.

Shares in SMTrack were untraded on Monday. The counter was last traded on May 15, when it closed at half a sen, valuing the company at RM6.6 million.