SGX RegCo: YuuZoo Networks share suspension will continue

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

The trading suspension of YuuZoo Networks shares will continue, Singapore Exchange Regulation said Friday.

That was in response to YuuZoo Network’s Thursday filing that it has made a second request to SGX RegCo to lift the share trading suspension imposed on its shares in March 2018.

“The board of the company believes continuing to keep the suspension in place is unjustified and deeply damaging to Yuuzoo shareholders,” YuuZoo Networks said in a filing to SGX Thursday. “The company has provided the market all the information RegCo has asked for.”

YuuZoo added it requested RegCo to “kindly state what information the company still needs to provide.”

On Friday, SGX RegCo said YuuZoo still hasn’t complied with an April 2018 exchange notice to release the findings of Ernst & Young Advisory on the company’s franchise sales’ revenue recognition.

The exchange added it also required “a review of the veracity” of some of the company’s receivables.

“In addition, contrary to what the company represented to the Exchange, investigations by the Commercial Affairs Department are ongoing,” SGX RegCo said.

“Pending the compliance with the notice of compliance by the company and clarity on these matters, existing shareholders and potential investors are not able to trade in the shares of the company on an informed basis.”

In March, YuuZoo Networks Group (YNG) said it would need to close all of its Singapore-based subsidiaries and terminate the employment of all its workers in the city-state due to SGX suspending trading in YNG’s shares.

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