KUALA LUMPUR: Lambo Group Bhd, the operator of e-commerce platform LamboPlace, fell 80 per cent after the company said trading in its shares will be suspended from Oct 4, with possible delisting on Oct 8.
The ACE Market-listed company was among top actives today as selling pressure pushed the price down to 0.5 sen from Thursday's close of 2.5 sen, valuing the company at RM7.7 million.
The penny stock saw a total of 48.8 million shares change hands earlier.
In a filing with Bursa Malaysia Securities on Sept 26, Lambo said Bursa Securities rejected its application for a further extension of time to submit its regularisation plan.
Lambo said it intends to submit an appeal to Bursa Securities on the decision to delist its securities.
Bursa Securities rejected the company's application for a 12-month extension until Aug 20, 2025, after it had missed the deadline of Aug 21, 2024.
"The company has not demonstrated to the satisfaction of Bursa Securities any material development towards the finalisation and submission of the regularisation plan to the regulatory authorities," the stock exchange said.
Lambo was classified as a Guidance Note 3 (GN3) company in February 2023, after its external auditors had expressed a disclaimer of opinion on the company's consolidated audited financial statements for the 16-month period ended Sept 30, 2022.
Its external auditor CAS Malaysia PLT said it could not ascertain the accuracy, completeness and validity of the financial statements concerning Lambo's subsidiary Fujian Accsoft Technology Development Co Ltd.
It said that sufficient appropriate audit evidence could not be gathered to verify Fujian Accsoft's financials up to the date it was deregistered in China in May 2022.
Fujian Accsoft was involved in software development, internet information services, enterprise management and consulting services.
Fujian Accsoft, an indirect unit of Lambo, came under the spotlight in July 2022 when China's Ministry of Finance said the company's audited financial statements for 2016, 2017 and 2018 were falsified and a penalty was imposed on its auditor.
The winding up of the company resulted in the deconsolidation of Fujian Accsoft in Lambo's financial statement from the beginning of the financial year June 1, 2021 and a loss on deregistration of RM3.96 million, which were included in the group's income statement.