Bursa Malaysia Securities Bhd has publicly reprimanded Can-One Bhd (CANONE) and its seven directors for breaching the Bursa
Malaysia Securities Main Market Listing Requirements (Main LR).
In a statement issued today, Bursa Malaysia Securities said the seven directors were each fined RM50,000.
CANONE was publicly reprimanded for breaching paragraph 9.16(1)(a) of the Main LR in respect of CANONE’s announcement dated Jan 5, 2012 issued by the Company in response to the unusual market activity query (UMA Query) from Bursa Malaysia Securities.
On January 5, 2012, the Federal Court had communicated its decision to allow the appeal by the Liquidator of Kian Joo Holdings Sdn Bhd (KJHSB) to proceed with the completion of the sale of 146,131,500 ordinary shares of 25 sen each held by KJHSB in Kian Joo Can Factory Bhd (KIANJOO) at RM1.65 per share for an aggregate consideration of RM241,116,975 to Can-One International Sdn Bhd, a wholly-owned subsidiary of CANONE.
On the same day, a UMA Query was issued by Bursa to CANONE arising from the increase in the price and volume traded in the shares of CANONE on that day.
Despite CANONE and its directors being aware of the Federal Court’s decision, in response to the UMA query, the Company in its announcement dated on the same day had represented that there was no corporate development relating to CANONE Group’s business and affairs that had not been previously announced that
might account for the unusual market activity including those at the stage of negotiation or discussion.
CANONE also said that its Board of Directors was not aware of any rumour or report concerning the business and affairs of CANONE Group that might account for the unusual market activity and it was not aware of any other possible explanation to account for the unusual market activity.
As such, CANONE’s announcement dated Jan 5, 2012 and issued at 7.20pm was inaccurate, not factual and hence in contravention of its disclosure obligation under the Listing Requirements, said Bursa Malaysia Securities.
Bursa Malaysia Securities views the contravention seriously in view of the importance of timely and accurate disclosure of material information to enable the market to be fully apprised of the state of affairs of the listed company to enable proper informed investment decision which is critical to preserve and
sustain market integrity and investor confidence.
The finding of breach and imposition of the above penalties on CANONE and its directors were made pursuant to paragraph 16.19 of the Main LR upon completion of due process and after taking into consideration all facts and circumstances of the matter.-- Bernama