Best World International, known for its direct selling business of health and beauty products, has received a “no-objection” from SGX RegCo to resume trading.
The company’s shares have been suspended since 2019, after questions were raised over the legality of its business model in China, one of its key markets. The issue came amid short selling attack by a set up called Bonitas Research.
However, before the shares can resume trading, there are a few other conditions to be met, with a clear onus on the company’s audit committee.
Best World is to obtain an updated independent legal opinion on the legality of the company’s sales and distribution business model in China within 4 months after its financial year-end on an annual basis and announcing.
In the event the company’s own audit committee believes such a legal opinion is no longer required, the committee is to consult SGX RegCo.
Next, Best World is to announce the audit committee’s assessment of whether it is satisfied that the concerns raised on the legality of the company’s sales and distribution business model in China have been addressed and the bases for such an assessment.
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The company is to also get the RegCo’s greenlight before any changes made to its board of directors for the coming three years.
Best World is to also announce its board can confirm if sufficient information has been disclosed to enable trading of the its shares to resume in “a fair and orderly manner.”
