Bursa Malaysia Securities Bhd has publicly reprimanded Carotech Bhd for failing to immediately announce that the company
had defaulted in the payments of various credit facilities.

In a statement today, Bursa Securities said Carotech and its subsidiaries had defaulted in the payments which ranged from 14 per cent to 122 per cent of its net assets from July 1, 2009 to April 23, 2010.

It said the company only announced the default in payments on July 1, 2010 and there was a material decrease in Carotech's share price from RM0.135 to RM0.09 in the next market day of the announcement.

Bursa Securities said the failure to make an immediate announcement on the default in payments breached Rules 9.03(1) and 9.04(l) of the Bursa Securities ACE Market Listing Requirements (ACE LR) read together with paragraph 2.1(d) of
Guidance Note 5 (GN5).

Bursa Securities also said it viewed the contravention seriously and reminded Carotech and its board of directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public. -- Bernama