MMP Resources rejected from SGX-ST Catalist Board

Its ability to continue operations is on rocky ground.

MMP Resources’ request to transfer its listing from the SGX-ST Main Board to the Catalist Board was rejected, according to a news release by the company.

The company reports that SGX-ST was of the view that MMP Resources’ ability to continue operations as an ongoing concern relies on whether the company can draw funding from prospective investors, and whether the majority of the company’s creditors will agree to convert debts into company shares. Further, it would also depend on the outcome of the current legal proceeding against MMP Resources, which may result in a $4.7m claim.

The company stated, however, that it is confident that the issues will be easily settled in line with its restructuring strategy currently underway. It expects to be cashflow positive in FY16.

Meanwhile, as per the disposal by its wholly owned subsidiary Magnum Energy Pte Ltd (MEPL) of the 70% equity stake in Magnum Modular Power Generation to Primeforth Renewable Energy Limited, MEPL shall be paid a total consideration of $500,000. The first payment of $100k was already received on 31 December 2015.