KUALA LUMPUR: MEMS Technology Bhd has received a temporary reprieve from being delisted after Bursa Malaysia Securities Bhd gave it until May 31 to undertake a regularisation plan.

The postponement followed the company's appeal that it was working out a restructuring scheme that involved the proposed subscription of shares in the company.

MEMS said on Thursday, March 11 that AmInvestment Bank was appointed as the company’s sponsor on Feb 23.

On Jan 28, MEMS said it had received a notice to show cause on de-listing of securities. However, it had appealed to Bursa Malaysia Securities, which subsequently allowed the reprieve.

On Feb 25, the Kuala Lumpur Sessions Court convicted Ooi Boon Leong and Tan Yeow Teck for knowingly authorising the furnishing of a misleading statement by MEMS.

Accrording to a statement posted on the Securities Commission website, Ooi Boon Leong, 48, a substantial shareholder and former director of MEMS together with Tan Yeow Teck, 48, who was then an executive director and chief financial officer, pleaded guilty to the offence under section 122B (b) (bb) of the Securities Industry Act (SIA) 1983.

The misleading statement was in relation to MEMS' reported revenue of RM73.4 million which was contained in its unaudited condensed consolidated income statements for the 12-month period ended July 31, 2007.

Both Ooi and Tan admitted in court that MEMS' group revenue of RM73.4 million, as reported in the unaudited 2007 financial statements, contained a total of RM30 million worth of sales which were fictitious.

These fictitious sales which were purportedly made to two multinational companies and one foreign company in China made up approximately 41% of MEMS' revenue for the financial year ended 31 July 2007. The Sessions Court then fined each of them RM300,000 (in default two years imprisonment).