SEPANG: MMAG Holdings Bhd has clarified that it is neither facing financial distress nor experiencing cash flow problems, despite being categorised as a Guidance Note 3 (GN3) affected listed issuer.
According to executive director Victor Chin Boon Long, the company has addressed this issue with Bursa Malaysia Securities.
"We have taken the necessary measures to overcome all the financial distress concerns," he told the media on the sidelines after the officiation of the strategic partnership between MMAG Aviation Consortium (MAC) and Unilode Aviation Solutions.
He said the company wants to engage with the stock exchange and inform them that the self-regulation plan is already in place.
"The first time we raised the rights issue of RM145 million, and the second time we raised RM240 million."
"This was before we received the GN3 notice, which was triggered due to a timing issue."
"They picked up the June figures and combined them with last year's audited accounts, which led to the trigger."We also explained to them, and that's why they allowed us to explain the rationale," he added.
Victor Chin said the company is now in discussions with the auditor to see if they can help expedite the audit process for the last quarter's accounts.
On Wednesday, MMAG announced plans to apply for a waiver from being classified as an affected listed issuer, after meeting the GN3 criteria.
The company explained that its external auditors had flagged a material uncertainty regarding its ability to continue as a going concern in the audited financial statements for the year ending March 31, 2023.
Furthermore, MMAG said its shareholders' equity on a consolidated basis was 50 per cent or less of its issued share capital, based on the unaudited financial results as of June 30, 2024.
In a separate development, MMAG's aviation subsidiary, MAC, revealed a partnership with Unilode Aviation Solutions, a Unit Load Device (ULD) management firm.
The partnership will enhance MAC's service offerings and pave the way for potential collaborations, including a ULD management centre at MAC's Xpress Cargo Terminal.
It will initially involve Unilode providing ULD management services to MJets Air Sdn Bhd, MAC's commercial cargo unit.
MJets Air will benefit from access to Unilode's global network, which includes over 172,000 ULDs.
Additionally, Unilode will offer ULD management and planning services and access to its repair centres located at 50 airports worldwide, along with its range of digital ULD services.