2010-06-30 11:37

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.

Primarily involved in making photo-conductor drums for laser printers, computer-controlled copiers and laser faxes, the company said it had five patented technologies in its prospectus for an IPO road show. The statement was repeated in other documents.

Two patent applications also claimed in the prospectus were found to have been withdrawn by the company.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.