Cymao says will not be classified as PN17 entity after triggering criteria

KUALA LUMPUR (July 15): Cymao Holdings Bhd said today it has triggered Bursa Malaysia's Practice Note 17 (PN17) prescribed criteria after the wood products manufacturer's external auditors Messrs PKF issued an unqualified opinion on material uncertainty relating to the company's status as a going concern.

In a statement to the bourse today, Cymao said it will, however, not be classified as a PN17 company based on Bursa's PN17 relief measures.

Cymao said PKF's unqualified opinion, which involves Cymao's audited financial statements for financial year ended Dec 31, 2019, took into account Cymao shareholders’ equity on a consolidated basis, which is less than 50% of its share capital, excluding treasury shares.

"Cymao's shareholders’ equity on a consolidated basis as at March 31, 2020 is 49% of its share capital (excluding treasury shares).

"For the avoidance of doubt, Cymao will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to Paragraph 8.04 and PN17 of the Main LR (Main Market listing requirements) for a period of 12 months from the date of this announcement.

"Cymao will re-assess its condition and announce whether it continues to trigger any of the criteria in PN17 of the Main LR upon the expiry of the 12 months from the date of this announcement," Cymao said.

More to come