SINGAPORE (Nov 27): Citing the need to “safeguard the interest of the market”, the Singapore Exchange has suspended the trading of ISR Capital shares with immediate effect.
In a filing released at 10.04pm on Sunday evening, SGX says there are “circumstances that prevent trading in the shares of this company on an informed basis”.
“We are reviewing the trading activities in the meantime,” says SGX.
“The suspension will be lifted only when SGX is satisfied that the company’s shares can be traded on a fair, orderly and transparent basis,” it adds.
On Nov 21, ISR was asked by the SGX to clarify certain points in its two valuation reports used to support its planned acquisition of a 60% stake in a rare earth concession in Madagascar for $40 million.
(See also: SGX raises more questions on ISR Capital’s second mineral valuation report)
ISR is paying for the 60% stake by issuing new shares at 10 cents each. The same stake was sold last November for just 3.7 million euros ($5.6 million).
The two reports have valued the concession at more than US$1 billion ($1.4 billion).
On Nov 23, ISR asked for a trading halt so that it could respond to SGX’s queries on the valuation reports by Nov 28.
But on the afternoon of Nov 24, ISR shares suddenly plunged 55% in less than two hours to 12.7 cents. Prior to the crash, ISR shares had gained some 4,000% year to date.
(See also: ISR Capital queried by SGX for fourth time in six months after stock falls 55%)
Meanwhile, reports emerged that Malaysian businessman John Soh Chee Wen; Quah Su-Ling, former CEO of IPCO International and Soh’s partner, and Goh Hin Calm, interim CEO of IPCO, were among individuals picked up by the police that same morning for their role in the penny stock crash of 2013.
On Friday Nov 25, Soh and Quah were charged for manipulating the shares of Blumont Group, LionGold Corp and Asiasons Capital, which is now known as Attilan Group. Goh has been accused of being their “key assistant”.
The trio’s web of influence and connections were said to have reached six other listed companies including ISR.
ISR’s current CEO is Quah Su-Yin is also the sister of Su-Ling.
(See also: John Soh Chee Wen and Quah Su-Ling charged in largest market manipulation scheme in Singapore’s history)
