Red alert: Avi-Tech placed on SGX watchlist; risks being removed

Following the notice of three consecutive years’ losses.

Avi-Tech has consistently failed to meet SGX standards for the past years and risks being removed from the list unless it pulls itself together and makes up for its losses.

In a release, the company announced that following the Notice of 3 Consecutive Years’ Losses released by the Company on 26 August, the SGX has notified the Company that it will be placed on the watch-list with effect from 3 September.

The Company will have to fulfill the requirements under Rule 1314 of the SGX-ST Listing Manual for itsremoval from the watch-list within 24 months from 3 September, failing which the SGX-ST may
either remove the Company from the Official List or suspend trading of the Company’s shares with a view
to removing the Company from the Official List.

Here's more from Avi-Tech:

Rule 1314 of the SGX-ST Listing Manual states that an issuer on the watch-list may apply to the SGX-ST for its removal from the watch-list if it satisfies any one of the following requirements: (i) the issuer records consolidated pre-tax profit for the most recently completed financial year  (based on the latest full-year consolidated audited accounts, excluding exceptional or  non-recurrent income and extraordinary items) and has an average daily market capitalisation of  $40 million or more over the last 120 market days on which trading was not suspended or halted  for a full market day; or (ii) the issuer satisfies the Listing Rule 210(3) and either one of the following requirements:- (a) cumulative consolidated pre-tax profit of at least $7.5 million for the last three years, and a minimum pre-tax profit of $1 million for each of those three years; or (b) cumulative consolidated pre-tax profit of at least $10 million for the last one or two years. 

Listing Rule 210(3)(a) applies to the last one year or last two years as the case may be.
The Company would like to notify all its shareholders and business partners that the Group’s business shall continue as usual, and that trading in its securities will also continue unless a trading halt or suspension is effected.