Mercurius granted deadline extension to end-August to keep listing status

If it fails, it will only be recognised as a cash company.

Investment holdings firm Mercurius Capital Investment was granted an extension of time to 30 August to maintain its listing status, a filing with the Singapore Exchange (SGX) revealed.

The firm had first applied for an extension in March, and again in May, to demonstrate to the Singapore Exchange Securities Trading (SGX-ST) that it had a viable business.

In its effort to seek out viable business opportunities, Mercurius entered into a joint venture agreement (JVA) with Thai firms Apex Development Public Company and Grand Bay Hotel Co., to acquire a 50% shareholding interest in Grand Bay from APEX in mid-June. The three parties will also jointly develop a hotel property under the name of Sheraton Phuket Grand Bay Resort in Phuket, Thailand, with Grand Bay as the joint venture vehicle.

Also read: Mercurius to buy 50% stake in Thai property development firm

The extension was granted for Mercurius to complete its joint venture, and demonstrate “viability of business in the form of investment in Grand Bay Hotel Co.” Should it fail, Mercurius will be deemed as a cash company under Rule 1017 of the listing manual.

The firm had also consulted with the SGX-ST on whether shareholders’ approval is required for the joint venture, in view that the relative figure under Rule 1006(b) of the Catalist Rule may not be meaningful as both Mercurius and Grand Bay were in loss positions.

Mercurius was informed that it should obtain the approval of the shareholders. “A circular setting out further information on the joint venture will be dispatched to the shareholders in due course together with the notice to convene the extraordinary general meeting,” Mercurius’ executive chairman and CEO Chang Wei Lu said.