First time I come across this type of case. Anyone can explain the significance (or non-significance)???
One specific thing: those fellas should have worded the announcement clearly – I am clueless as to what ‘sponsor would not be able to discharge its duties …without a subst increase in the level of diligence.”
Means what???? Anyone knows?
The Board of Directors of Renewable Energy Asia Group Ltd (the "Company") wishes to announce that on 8 June 2011, KW Capital Pte. Ltd. (“Sponsor”), the continuing sponsors of the Company, has served the Company three month’s notice of its intention to terminate its services as continuing sponsor to the Company.
Accordingly, the Sponsor shall cease to act as continuing sponsor to the Company with effect from 7 September 2011 (or such earlier date as may be agreed by the Company, the new continuing sponsor to be appointed and Singapore Exchange Securities Trading Limited (the “SGX-ST”)).
The Company had noted that the Sponsor would not be able to discharge its duties as a continuing sponsor without a substantial increase in the level of diligence.
Good questions Joes....wondering if the stock for renewable crash today ?
Oh dear I still hold some amount on this, hopefully this news is not so bad..
6.1 cents currently. My fren Trojan got this reply from the company:
" With regard to the Resignation of Sponsor, the Sponsor company is presently facing resource issues and it is an independent incident that is not related to the financial performance of the Company, as well as, unfortunately, something that is beyond the Company’s control. The Company is in the midst of searching for a new Sponsor and has also been approached with offers. The Company will review each possibility carefully and make the appropriate announcement once a decision is made.
Operationally, please be assured that the Group is reviewing its business segment and will implement operational measures to improve internal processes and efficiency."
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