Red light for Goldengreen on the eve of its listing
Due to improper disclosure about patents in its prospectus, a Suzhou company was stopped from selling shares on the Shenzhen Stock Exchange though its initial public offering (IPO) was approved by the China Securities Regulatory Commission (CSRC).
Shenzhen exchange securities regulations. [LIU JUNFENG / CHINA DAILY]
Suzhou Goldengreen Technologies Ltd even issued 20 million shares, priced at 20.80 yuan ($3.06)each, on March 9 and went through required IPO procedures like accepting purchase applications and drawing lots.
But the company's patents were then found to have been terminated by the State Intellectual Property Office for failure to pay annual fees.
Two patent applications also claimed in the prospectus were found to have been withdrawn by the company.
After a patent lapses, it enters the public domain and can be used free of charge.