SINGAPORE Exchange Regulation (SGX RegCo) has issued a query to Halcyon Agri Corp on Friday morning in relation to its trading activity, after it noted " unusual price movements" in the shares recently.

 

Shares of the natural rubber supplier were trading at 30.5 Singapore cents as at 10.43am on Friday, unchanged from the previous close. However, its shares have gained 29.8 per cent since Monday' s close of 23.5 cents.

 

In the query issued at 9.29am, SGX RegCo asked if Halcyon Agri was aware of any information not previously announced concerning the company that might explain the trading. If the company were aware, the information shall be announced immediately, it added.

 

SGX RegCo also asked if the company was aware of any other possible explanation for the trading, such as public circulation of information by rumours or reports. It also asked the company to confirm its compliance with listing rules.

 

Prior to the query, Halcyon Agri' s most recent announcement was on Nov 26, where it provided updates on its business for the third quarter ended Sept 30, 2020.

 

It had said revenue for Q3 was up 11 per cent on the quarter to US$396.4 million, from US$357.3 million for Q2, although it is still down 22.7 per cent year on year due to lower delivered volumes and lower average realised selling price.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at US$10.9 million for the latest three months, a reversal of the previous quarter' s negative Ebitda of US$17.4 million.

 

On Nov 18, Halcyon Agri had announced the successful completion of its issuance of US$200 million guaranteed subordinated perpetual securities, which carries an initial distribution of a fixed rate of 3.8 per cent per annum for the first five years.

 

It had announced the pricing of the perps in a filing on Nov 11. The perps are guaranteed by Chinese state-owned enterprise Sinochem International Corp, which owns Halcyon Agri' s major shareholder Sinochem International Overseas.

SGX RegCo queries if it was aware of any information not previously announced

 

HALCYON Agri said it is unaware of any material information not previously announced that might explain its recent share price movements, it said Friday evening in an exchange filing.

 

The natural rubber supplier was responding to a query issued by Singapore Exchange Regulation (SGX RegCo) earlier in the morning relating to its trading activity, after the surveillance unit noted " unusual price movements" in the shares recently.

 

Shares of Halcyon Agri closed lower on Friday, falling 1.6 per cent or 0.5 Singapore cent to 30 Singapore cents.

 

However, its shares have gained 27.7 per cent since Monday' s close of 23.5 Singapore cents. The shares were up 10.4 per cent and 15.1 per cent on Wednesday and Thursday respectively.

 

Around 6.6 million shares changed hands on Wednesday, and about 21.3 million shares traded on Thursday, significantly higher than the 1.7 million average daily volume for this quarter prior to Wednesday. Trading volume remained high on Friday, with around 21.5 million shares changing hands.

 

SGX RegCo asked if Halcyon Agri was aware of any information not previously announced concerning the company that might explain the trading. It also asked if the company was aware of any other possible explanation for the trading, such as public circulation of information by rumours or reports.

 

Halcyon Agri said it is unaware of any material information not previously announced that may explain the movements. It noted that its board has a duty to assess all strategic options to maximise shareholder value, and from time to time, enters into discussions on possible transactions involving the company.

 

" There is no certainty that any transaction will materialise," it said. It confirmed it is in compliance with listing rules, and said it would make the relevant announcements when required.

 

The company also noted that natural rubber prices as of Thursday, have increased around 21.9 per cent since Sept 30.

 

It said it had disclosed in its previous Q3 business update that the company has been able to take advantage of the recovery in rubber prices to capture higher margin.

 

Prior to the query, Halcyon Agri' s most recent announcement was on Nov 26, where it provided updates on its business for the third quarter ended Sept 30, 2020.

 

On Nov 18, Halcyon Agri had announced the successful completion of its issuance of US$200 million guaranteed subordinated perpetual securities, which carries an initial distribution of a fixed rate of 3.8 per cent per annum for the first five years.

 

Halcyon Agri said Friday that the issuance has strengthened the group' s net working capital and liquidity position. " Save for the information or developments which have been disclosed to the market via SGXNet, the board is not aware of any other possible explanation for the trading activity," it added.