SINGAPORE (May 2): No Signboard Holdings said CEO Lim Yong Sim was placed under arrest by the Commercial Affairs Department (CAD) and is currently on bail.

The CEO has however not been charged for any offence.

See: No Signboard assisted in CAD probe over aborted Jan share buyback

No Signboard and Lim were assisting in CAD investigations related to its abortive share buyback in January.

Lim had instructed the company's broker to buy back 1.07 million shares at 14 cents each on the same day after the Jan 31 AGM which approved the company's share buyback mandate.

The price exceeded the 5% cap above the average closing price of the last five days permitted under the share buyback mandate of 12.26 cents as at Jan 31.

See also: No Signboard breached two Catalist rules in 24% price jump

In a filing this morning, the seafood restaurant operator said Lim was arrested on Thursday on reasonable suspicion that sections 197 and 218 of the Securities and Futures Act Cap 289 may have been breached.

Copies of documents related to the abortive share buyback were also provided to the CAD.

No Signboard’s board said its business will not be affected and will continue as usual.

It added that it will continue to cooperate fully with the CAD in the investigations and make further announcements when there are material developments on the matter.

As at 11.20am, shares in No Signboard are trading at 8.5 cents.