CORPORATE ANNOUNCEMENTS
General Announcement
Reference No: EL-130102-51931
 
Company Name : ECM LIBRA FINANCIAL GROUP BERHAD
Stock Name : ECM
Date Announced : 2/01/2013
Type : Announcement
Subject : PRACTICE NOTE 17 / GUIDANCE NOTE 3 MONTHLY ANNOUNCEMENT
Description :

ECM LIBRA FINANCIAL GROUP BERHAD (“ECMLFG” OR “COMPANY”)
MONTHLY ANNOUNCEMENT ON THE STATUS OF THE COMPANY'S PLAN TO REGULARISE ITS CONDITION PURSUANT TO PRACTICE NOTE NO. 17 ("PN 17") OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

Announcement Details/Table Section :

Further to the First Announcement made by the Company on 14 December 2012, the Board of ECMLFG wishes to inform that the Company is evaluating various options in its endeavour to formulate a plan to regularise the Company's financial condition ("Regularisation Plan").

The Company has approximately eleven (11) months to submit its Regularisation Plan to the authorities for approval.

The Company triggered paragraph 2.1 (g) of the PN 17 criteria by virtue of the disposal of its investment banking business (“Disposal”).  Arising from the Disposal, ECMLFG has a healthy cash position and also does not carry any long term liabilities. 

In this respect, the Board of ECMLFG wishes to reiterate that the Company and its subsidiaries (the “Group”) continue to have the financial and operational resources to carry out the Group’s remaining business operations. However, as a result of the Disposal, the remaining revenue from the Company’s wholly-owned fund management subsidiary, Libra Invest Berhad (“LIB”), represents less than 5% of the Company’s existing issued and paid-up capital, and as such LIB, as the remaining major business of the Group, is currently deemed to have insignificant business or operations. After the Capital Repayment by the Company, which is expected to be completed within the first quarter of the financial year ending 31 January 2014, LIB’s revenue will contribute more significantly vis-à-vis the then reduced issued and paid-up capital of the Company.  

LIB is a fund management company which holds a Capital Markets Services Licence issued by the Securities Commission to manage clients’ assets. Clients’ funds are kept in a trust account with licensed institutions or in the case of LIB’s unit trust funds, LIB has entered into trust deeds with the respective trustees where the trustee acts as custodian of the assets of the funds and holds the assets in trust for the unitholders.  As the Board of ECMLFG continues to consider various avenues to uplift the PN17 status, LIB will continue its business operations as usual.

 

This announcement is dated 2 January 2013.

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