Kofi Yamoah, MD, GSE
The Ghana Stock Exchange (GSE) has announced that it would compulsorily delist African Champion Industries Limited (ACI) from the main market of the Exchange at the end of September this year.
The decision, according to management of the GSE, was based on Rule 13 of the GSE Listing Rules.
“Under Rule 13(1) of GSE’s Listing Rules, the Council may at any time and in circumstances as it deems fit, suspend or cancel a listing and shall do so to protect investors and to ensure an orderly market.”
The GSE Council can delist a company if its financial situation is significantly threatened, as provided under Rule 13(4) (g) of GSE’s Listing Rule or where the company consistently fails to comply with GSE’s Rules and directives, as per Rule 13(4)(h) of GSE’s Listing Rules.
“The GSE deems the financial situation of ACI to be significantly threatened. The financial statements submitted for year-ended 2017, first quarter 2018 and half year 2018 show that ACI made a loss of GH¢650,501 in 2016, a profit of GH¢2,218,623 in 2017, losses of GH¢291,973 and GH¢334,476 in the first and second quarter of 2018 respectively. The financial statements also show that the equity of ACI is in the negative of GH¢3,303,102 as at June 2018.
“Further to that, ACI failed to submit its audited financial statements for 2017, as well as its financial statements for the first quarter of 2018 within the required regulatory period until the company was prompted by the Exchange. ACI was one of the companies whose listing were suspended in 2017 for failure to submit its financial statements and to hold an AGM.”
The GSE explained further that ACI’s listing status was reinstated after it remedied those deficiencies.
“However, the company lapsed into the same situation within a relatively short period of time for no reason.”
PKL Limited
In another development, the bourse announced that PKL has since withdrawn the request to restructure its operations.
In February 2017, PKL submitted a request to voluntarily delist the company from the GSE’s Main Market to enable the directors to restructure the company.
Under the GSE’s Rules 13(4)(g) and (h), a listed company may be delisted on grounds of non-disclosure regarding its continuing listing obligations or if the financial situation of the company is significantly threatened. PKL is currently not in production.
“The GSE has therefore decided to suspend the listing status of PKL with immediate effect. If and when the restructuring of the company is successfully concluded, the suspension will be lifted otherwise, PKL will be compulsorily delisted at the end of December 2018.”
By Samuel Boadi