SGX-ST rejects New Silkroutes proposal to resume trading

The government regulator says there is material uncertainty over the Group’s ability to operate.

New Silkroutes Group Ltd.’s proposal to resume trading was rejected by SGX-ST, according to a bourse filing.

SGX-ST said that the decision stemmed from concerns about New Silkroutes financial stability and viability as it remains in a net current liability position.

The company’s 12-month cash flow forecast from May 2024 to April 2025 projected a net cash outflow of $3.3m.

Furthermore, the acquired company Hequ Yuanyang Industrial Co., Ltd., has not demonstrated how it will fund upgrade works amounting to $15.4-19.2m, given that only $2.67m were unutilised under the DIP Facility.

SGX-ST will proceed to delist the company should it fail to meet SGX’s requirements.