Lum Chang Creations says still evaluating mainboard transfer due to ‘market volatility’

[SINGAPORE] Catalist-listed Lum Chang Creations (LCC) on Monday (Jun 8), said that it is “currently still monitoring and evaluating the market conditions” for its proposed placement as it prepares for a transfer to the mainboard.

The placement was intended to help LCC meet the mainboard’s minimum shareholding spread and distribution requirements.

Although shareholders gave the green light for the proposed transfer and a proposed one-for-one bonus issue at an extraordinary general meeting held on May 25, the execution of these corporate actions is sequential.

The proposed placement must be completed before the transfer becomes effective. Furthermore, LCC had contemplated that the placement would be completed on or before the record date for the bonus issue.

Due to the current uncertain timeline, LCC stated that it will hold off on applying to the Singapore Exchange for the listing and quotation of the bonus shares. The company will wait for “further clarity on the timing” of the placement before setting a record date to determine bonus share entitlements.

Lum Chang Holdings (LCH), the parent company of LCC, had previously noted in an Apr 30 circular that the proposed placement could be undertaken by LCC itself, LCH, and/or a director and substantial shareholder of LCC.

LCC reminded shareholders and potential investors that there is “no certainty or assurance” regarding the terms or timing of the placement, or whether the placement, transfer, and bonus issue will ultimately proceed to completion.

Shares of LCC fell 2.3 per cent to close S$0.02 lower at S$0.84 on Friday, while those of LCH were flat at S$0.53.