Hong Kong’s stock exchange has rejected CNMC Goldmine’s dual listing on its mainboard, saying that the company is not able to meet the minimum market capitalization requirement to list and views that the listing does not provide liquidity for the company’s shares in Hong Kong.
CNMC said on Monday it has been informed by the Stock Exchange of Hong Kong (SEHK) listing committee in Hong Kong that it is not suitable for listing on its mainboard as its current market capitalization value is less than the minimum market capitalization requirement of HK$500 million under its mainboard listing rules.
The SEHK said that the company’s share price has been declining and as of December 14, 2018, the closing price of the company’s stock was at S$0.198, with a market capitalization of S$80.7 million (about HK$458 million), which is lower than the minimum amount required to list on the SEHK.
The listing committee also noted that the group has been able to fund its operations with internal resources historically, and that the primary objective of the proposed dual listing was not to raise capital for business expansion but to create “meaningful liquidity” for the company’s shares in Hong Kong. However, through the company’s application, the proposed dual listing did not seem like it would achieve the liquidity the company wanted, the listing committee said.
The board of CNMC has accepted the outcome from SEHK’s listing committee and said it remains fully committed to carrying out the various growth initiatives it had previously said it would do, which are to boost gold production, reduce operating costs, and diversify the group’s income stream stemming from the production, and the sale of silver, lead and zinc.
CNMC’s share price sank 4.15% or S$0.008, to S$0.185 minutes into trading on Monday.