The Stock Exchange of Thailand (SET) notified the procedures for STARK on Monday as its shareholders’ equity is negative and recommends the investors to trade STARK’s securities with caution.
As the securities of Stark Corporation Public Company Limited (SET: STARK) have been suspended from trading by posting SP (Suspension) sign since March 1, 2023 as a result of its failure to submit the financial statements for the year ended 2022 and also Q1/2023 financial statements by deadline.
STARK submitted the audited financial statements for the year ended 2022 to the SET on June 16, 2023, which shows that the shareholders’ equity of 2021 (restated) and 2022 are negative in the amount of THB 2,895 million and THB 4,415 million respectively, resulting in the possible delisting of STARK, according to SET’s regulation Re: Delisting of Securities.
In order to comply with SET’ s regulations Re: Delisting of Securities and Notification of the SET Board of Governors: procedures for action for the elimination of the grounds for the possible delisting of ordinary shares, SET will proceed as follows:
1. Announce that STARK’s securities are subject to possible delisting because of its negative equity from 19 June, 2023 onwards. SET will post NC (Non-Compliance) sign on the STARK’s securities. Regarding the suspension of the trading by posting SP sign in the case that STARK’s securities are subject to possible delisting as the equity is negative, since SET has temporarily allowed trading on STARK’ s securities for one month during June 1- 30, 2023, therefore, SET will post SP sign on STARK’ s securities from July 1, 2023 onwards, until the company is being able to eliminate the grounds for delisting as the shareholders’ equity is negative, and possess the qualifications in order to resume trading.
2. STARK must disclose its process to eliminate the grounds for delisting as the equity is negative, including the timeline for that process to inform the shareholders and the investors within 19 July, 2023.
3. STARK must process urgently to eliminate the ground for delisting as the equity is negative within 3 years from June 19, 2023. When the deadline is due, if the company is still unable to eliminate the ground for delisting, SET may consider delisting the company’s securities. As SET has temporarily allowed trading on STARK’ s securities for one month ( June 1- 30, 2023) after the company’s securities has been posted SP sign for 3 months as a result of failure to submit the financial statements for the year ended 2022 by the deadline, therefore, SET will no longer allow trading on STARK’s securities as a result of its negative in the shareholders’ equity.
SET recommends the investors to trade STARK’s securities with caution and carefully study STARK’s financial statements, auditor’s disclaimer of opinion on STARK’s financial statements, including its cause, and the implementation guideline of company, summary of special audit result and any other information related to STARK.
Since the Thai Stock Exchange temporarily resumed trading of STARK shares, which had been suspended for failing to submit earnings, on June 1, the stock price has declined by more than 180%.
The temporary trading session for STARK will last until 30 June 2023, and transactions can be conducted using a cash balance account.
