RE: HKSX Rules21 Jan 2021 14:42
https://insights.diligent.com/audit-reporting/understanding-four-types-audit-reports apologies but I've had to post these two links separately as they don't seem to work otherwise. i realise the narrative has started to move on but i feel compelled to address the issue of concern over the listing rules,as with all due respect to heimdal, imo there is absolutely no reason to be concerned at the moment.as i posted yesterday and as bignose has alluded to,reg 13.26 was introduced to deal with the specific perceived mischief of cash shells and backdoor listing. i read a longish narrative piece yesterday about its introduction which made this crystal clear.as is often the way i can't find it today but i have posted a link to the 2019 guidance which makes this pretty clear.whilst the wording might, on the face of it, seem at a stretch to be applicable to regent on the assets aspect,the guidance notes make it clear that this is a qualitative test,not quantitative and that the exchange in effect has a discretion to assess the situation.i think it reasonable to assume that it would have regard to the mischief contemplated by the regulation when considering its applicability,rather than applying it mindlessly to companies in regent's situation.moreover i fail to see how regent could be said to be lacking in assets.yes its extremely cash strapped,but it has assets in the form of fortacin ip etc, as well as the minor assets like venturex.also it has just acquired DLI,which may well have a significant value over time.both the other articles referenced by heimdal focus on the specific situation where a company has had a disclaimed audit option,and as a result will be automatically (i think )suspended and then delisted if it fails to obtain a non disclaimed audit within the specified timeframe. again i have posted a link explaining the various types of audit.you will see that a disclaimed opinion seems to be given in situations where,for example,the auditors feel they have not been given full disosure by the company or have been otherwise unable to produce reliable figures.it is not a qualified opinion.so far as I'm aware regent has not had any audit of that type.i fail therefore to see anything to cause me concern from the perspective of exchange regulation at the current time.we have some real things to worry about,e.g. will the oct sales materialise at a sufficiently high level to provide some form of income or at least a basis for outside interest ( i was pleased to see heimdal suggesting this today,although i am a little less sanguine) to name just one,but hk listing regs is not one of them so far as I'm concerned.sorry for the very long post but i do feel particularly strongly over this.just my opinion ofcourse,but for once I'm not going to qualify it by saying i could be wrong as i don't think i am.