Adventa is now classified as a PN 17 company. What does this mean?
PN 17 stands for Practice Note 17/2005 (formerly known as PN 4).
The reasons for companies to be classified under PN17 are as follows:
1. Shareholders' funds less than 25% of their total paid-up capital.
2. Receivers have been appointed to take control of the companies’ assets.
3. The winding-up of some of their subsidiaries and associated companies.
4. The auditors have expressed adverse opinions on the companies.
5. Default in loan interest and principal repayments.
6.The companies have suspended or ceased their operations.
Adventa lost 5 sen at the close of trading this morning. It was lasted traded at 43.5 sen.
The company is not in any financial distress. I don't think there is much cause for concern. It was suspended because it sold its core business in the glove industry. It has 12 months to submit a regularization plan to Bursa and get it approved. I have no cause to opine it will fail to do this.