KTL Global, which is in the process of delisting from the Singapore Exchange S68 mainboard, will not be making an exit offer.

 

In a bourse filing, the company says it does not have the financial resources to make an exit offer to its shareholders.

 

Due to KTL Global EB7 &rsquo s &ldquo dire financial situation&rdquo , the company is not suitable for voluntary liquidation &mdash lacking the necessary funds to engage professionals required for such a process.

 

Additionally, the company does not have the funds to hire accounting professionals to provide the latest unaudited financial results.

 

As at June 30, KTL Global has only approximately $650 in cash and bank balances. Neither the company nor its subsidiaries have any ongoing operations. 

 

Consequently, the company does not have the financial resources to make an exit offer or file for voluntary liquidation.

 

Trading in the company' s securities were suspended on Aug 17, 2021.

Tan Kheng Yeow conspired with another individual to create a false appearance of active trading in the company&rsquo s shares

 

THE former chief executive of mainboard-listed KTL Global, Tan Kheng Yeow, began serving his eight-month jail sentence after the High Court dismissed his appeal in July, said the Monetary Authority of Singapore (MAS) and Singapore Police Force (SPF) in a joint media release on Wednesday (Aug 28).

 

Tan was sentenced to imprisonment by the State Courts on Jan 23 for conspiring with another individual, Tang Boon Hai, to create a false appearance of active trading in KTL shares.

 

Their actions came amid concerns that KTL was unable to meet the new minimum trading price requirement announced by the Singapore Exchange in 2014.

 

Under the requirement, a mainboard-listed company&rsquo s volume-weighted average price (VWAP) over a six-month period cannot fall below S$0.20. Issuers that fail to comply may be delisted.

 

The six-month VWAP of KTL&rsquo s shares as at Aug 1, 2014, was below the minimum price required.

 

Hence, between Oct 16, 2014 and Sep 8, 2015, Tan conspired with Tang to create a facade that people were actively buying KTL shares, in order to increase the company&rsquo s share price.

 

Tan also held significant quantities of KTL shares and knew that his net worth would increase along with the share price, said MAS and SPF.

 

They highlighted that Tan also arranged for the funds to be transferred to Tang to finance trades in KTL shares placed by the latter in 14 trading accounts.

 

Tang is said to have used the accounts to buy 122.8 million shares and sell 120.7 million shares from Nov 4, 2014 to Sep 8, 2015. This resulted in the average daily traded volume for the stock to surge to about one million shares during that period, up from about 96,859 shares over the previous six months.

 

To do this, Tang allegedly instructed a former trading representative from OCBC, Tan Chun Yong, to place orders and trades in the stock using six accounts, which belonged to other individuals and were serviced by OCBC Securities.

 

Tang was convicted on Apr 18, 2023 and was sentenced to 30 months&rsquo imprisonment. Meanwhile, Tan Chun Yong was charged on Oct 29, 2020 and court proceedings are still ongoing.

 

KTL&rsquo s Tan has pleaded guilty to one charge under section 197(1)(a) of the Securities and Futures Act and section 109 of the Penal Code. He still faces two other charges of cheating and dishonestly inducing delivery of property.

KTL Global said its board is currently in discussion with relevant professionals, knowing that an appeal on the judgment may be made within 14 days from the date of judgment.

A HIGH Court judge has ordered KTL Global to pay a man S$933,800 &ndash an amount which he had allegedly paid to acquire his 5,500,000 shares in the company in 2015.

 

In a bourse filing on Monday (Mar 13), the mainboard-listed company said its board is currently in discussion with relevant professionals, knowing that an appeal on the judgment may be made within 14 days from the date of judgment. The judgment was made on Mar 10.

 

KTL Global thus said further announcements will be made on this as and when necessary to keep shareholders informed of material developments in this matter.

 

The man, Khua Kian Keong, had intiated the lawsuit against KTL Global by sending the company a letter of demand in Mar 19, 2021. 

 

At that time, the company had said the board and management will require time to investigate and review the letter as they were constituted and appointed after the material time of the claim.

 

On Monday, KTL Global continued to advise shareholders to refrain from taking any action in respect of their securities in the company which may be prejudicial to their interests, and to exercise caution in their dealings.