FRUIT and seafood distributor SunMoon Food on Saturday updated that its board has various potential fundraising options available, and is currently in talks with a potential investor on a specific funding option.
This came amid news that its parent had been placed under involuntary bankruptcy reorganisation in China more than two months ago, and that SunMoon's board is reviewing its ability to continue operating as a going concern. (see amendment note)
In view of this, and because the company is unable to reasonably assess its financial position and inform the market accordingly, it has resolved that the trading of its shares will continue to be suspended on a voluntary basis.
In addition, since its setting up of the executive committee (exco) to take over the group's day-to-day management and operations, the exco has started formal inquiry proceedings to question and to understand more from the management team about the recent developments.
The exco has also appointed Chinese counsel on Oct 16, 2020 and has been advised by its Chinese counsel that the three entities - Shanghai Yiguo E-Commerce, Shanghai Winchain Supply Chain Management and Shanghai Exfresh Logistic - were placed under involuntary (rather than voluntary) bankruptcy reorganisation by creditors under Chinese law.
The exco has also created and implemented a framework to work with the current management team to ensure that the company's business operations can continue to operate. It seeks to reduce the impact of the recent events on SunMoon's business operations.
SunMoon will submit a resumption proposal to the Singapore Exchange (SGX) with a view to resume trading in its securities within 12 months of the date of suspension.
If the resumption proposals have not been implemented within six months from the date when SGX indicates that it has no objection to the resumption proposal, the Exchange may remove the company from the official list.
Amendment note: An earlier version of this story incorrectly stated that the Yiguo entities had filed for bankruptcy. They had in fact been placed under bankruptcy reorganisation.