Matex International Ends Legal Disputes: What Investors Must Know About Lawsuit Discontinuance and Trading Suspension

Key Highlights from Matex International’s Latest Announcement

• Conclusion of Two Major Lawsuits: Matex International Limited has officially discontinued two High Court applications (OA 733/2025 and OA 790/2025), marking the end of significant legal uncertainties for the company.
• Court Judgment Details: The Court indicated that an injunction against the completion of certain Subscription Agreements would have been granted if one lawsuit (OA 733) had not been discontinued. The reason was non-compliance with the company’s constitution in the board resolution authorizing these agreements.
• Director Clarification: The company clarified that three incumbent Directors—Mr James Kho Chung Wah, Mr Chng Hee Kok, and Mr Yeo Hock Huat—were not involved in the board’s approval of the contentious Subscription Agreements.
• No Outstanding Lawsuits: With the conclusion of OA 733 and OA 790, Matex International currently faces no outstanding legal actions.
• Trading Suspension Remains: Despite the legal resolution, the trading suspension on Matex’s securities, enacted on 23 July 2025, remains in effect.

Details Investors Must Know: Why This News Is Price-Sensitive

The resolution of Matex International’s legal disputes directly impacts shareholder value and future company operations. Here’s why investors should pay close attention:

1. Resolution of Legal Uncertainty: The company’s announcement confirms that all major lawsuits are now discontinued. Previously, these suits centered around Subscription Agreements with Ms Lim Yan Peng and Ms Gan Peiling, which were found to be potentially in violation of the company’s constitution. The Court’s judgment suggested an injunction would have been granted if the suit continued, indicating serious governance issues were at stake.
2. Board Governance and Director Involvement: Matex has clarified that its current directors were not involved in the problematic board approval, possibly mitigating reputational risk for the existing leadership team. This may reassure shareholders about the current Board’s stewardship moving forward.
3. Trading Suspension: Although the lawsuits have ended, the trading suspension remains. Investors cannot trade Matex shares until further notice. This ongoing suspension could affect liquidity and share price when trading resumes.
4. Potential for Price Movement: The lifting of legal clouds is typically positive for share value, but the trading halt means investors must wait for the next regulatory update. When trading resumes, expect potential volatility as the market reacts to the cleaned-up legal landscape and any further corporate disclosures.
5. Regulatory Oversight: The announcement has been reviewed by the company’s sponsor (ZICO Capital Pte Ltd), but not by the Singapore Exchange (SGX-ST). SGX-ST assumes no responsibility for the content, underscoring the importance of investor due diligence.

What Should Shareholders Do?

Matex International advises shareholders and potential investors to read all announcements carefully and consult professional advisors (stockbrokers, bank managers, solicitors, accountants) if uncertain about their next steps. The company will continue to update the market as new information arises.

Conclusion: Watch for the Next Move

The end of Matex International’s legal battles removes a major hurdle for the company. However, the ongoing trading suspension means investors must remain vigilant for any further updates, especially regarding the resumption of trading and any changes in corporate governance or strategic direction. The resolution of these issues is likely to be closely monitored by the market and could result in significant share price movements once trading resumes.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult with professional advisors before making any investment decisions. The information provided herein is based on company announcements and is subject to change as new disclosures become available.

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