KUALA LUMPUR (July 6): Asdion Bhd (KL:ASDION) is set to be suspended from trading on July 14 and delisted on July 16 after failing to appoint a replacement sponsor for its proposed Guidance Note 3 (GN3) regularisation plan.
The ACE Market-listed company did not appoint a new sponsor following the resignation of Kenanga Investment Bank Bhd as its principal adviser and sponsor, nor did it apply for an extension of time to do so, Bursa Malaysia said on Monday.
The exchange said Asdion may appeal against the delisting by July 13, failing which its shares will be removed from Bursa Malaysia's official list on July 16. Trading in the company's securities will, nevertheless, be suspended from July 14 even if an appeal is submitted and remains pending.
On July 3, Asdion announced that Kenanga would cease acting as its principal adviser and sponsor with effect from July 6, following a review of the progress of the proposed GN3 regularisation plan.
The company had said it was seeking a replacement adviser and sponsor and would make the necessary announcement in due course.
Prior to that, in its monthly GN3 update on July 1, Asdion said it was still working on its regularisation plan after Bursa Malaysia granted it a second extension until July 31 to submit the plan, leaving it with about one month to do so. The company had previously received a six-month extension until Jan 31.
Asdion was first classified as a GN3 company in August 2024 after its external auditors flagged material uncertainty over the group's ability to continue as a going concern, requiring the company to submit a regularisation plan to Bursa Malaysia within 12 months.
According to the auditors' report at the time, the company's current liabilities exceeded its current assets by RM5.56 million as at end-March 2024, while it posted a net loss of RM7.79 million for the financial year. The auditors said Asdion's ability to continue operating depended heavily on the successful implementation of its turnaround and fundraising plans.
The company was initially involved in software development and IT, before diversifying into logistics in 2015 and property development in 2016. Currently, Asdion is only left with its loss-making logistics division.
Shares of Asdion closed unchanged at two sen on Monday, with a market capitalisation of RM10.21 million.