SINGAPORE (Apr 29): Seafood restaurant operator No Signboard Holdings says the company from last Wednesday to Friday assisted in Commercial Affairs Department (CAD) investigations related to its abortive share buyback in January.
No Signboard CEO Lim Yong Sim had instructed the company's broker to buy back 1.07 million shares at 14 cents each on the same day after the Jan 31 AGM which approved the company's share buyback mandate.
See: No Signboard breached two Catalist rules in 24% price jump
No Signboard says CAD was provided access to and was given copies of documents in connection with the abortive share buyback although no files or records or equipment belonging to the company have been seized by the authority.
In addition, the CEO and CFO of the company gave statements to the CAD to provide information in connection with the abortive share buyback. While the passport of the CEO has been retained by the CAD as a standard requirement during investigations, no person in the company has been arrested or charged for any offence by the authority.
In a Feb 3 response to an SGX query after the stock surged 24% to 15 cents, Lim said he did not notice that the share purchase at prices of up to 14 cents exceeded the 5% cap above the average closing price of the last five days permitted under the share buyback mandate of 12.26 cents as at Jan 31.
In the wake of the two breaches, No Signboard's sponsor, RHT Capital, has directed Lim to attend directors' trainings to re-familiarise himself with the listing rules and other regulatory requirements.
In addition, the company has been directed by the sponsor to develop and immediately implement a comprehensive internal policy and procedure on the share buyback process.
No Signboard says the company’s business and operations have not been affected and will continue as usual. The investigations will also not affect the CEO and CFO of the company in their respective roles and functions as key executive management of the company.
The company will make further announcements as and when there are any updates on the matter.
Shares in No Signboard last traded at 8.4 cents on Apr 24.
