Cacola Furniture placed in SGX-ST watch-list

Company has 2 years to shape up.

The Board of Directors of Cacola Furniture International Limited announced that the Company had on 4 March 2014 received notification from the Singapore Stock Exchange Securities Trading (SGX-ST) that the Company will be placed on the Watch-List with effect from 5 March 2014, triggering a two-year probation period that could ultimately lead to a delisting.

This is pursuant to Rule 1311 of the SGX-ST Listing Manual.

The Company would be required to meet the requirements of Listing Rule 1314 of the Listing Manual within 24 months from 5 March 2014, failing which the SGX-ST would delist the Company or suspend trading in the Company’s shares with a view to delisting the Company.

Listing Rule 1314 states that an issuer may apply for its removal from the Watch-List if it satisfies any one of the following two requirements.

First, Cacola Furniture records consolidated pre-tax profit for the most recently completed financial year (based on the latest fully ear consolidated audited accounts, excluding exceptional or non-recurrent income and extraordinary items) and has an average daily market capitalization of S$40 million or more over the last 120 market days on which trading was not suspended or halted for a full market day.

Or, second, the company satisfies Listing Rule 210(3) and either one of the following requirements: a) cumulative consolidated pre-tax profit of at least S$7.5 million for the last three years, and a minimum pre-tax profit of S$1 million for each of those three years; or b) cumulative consolidated pre-tax profit of at least S$10 million for the last one or two years. 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.