GSE lifts suspension on Clydestone and TRANSOL

| Updated Aug 29, 2017 at 10:00pm

 

 

The Ghana Stock Exchange (GSE) has lifted the suspension on the trading activities of two of the five companies that were sanctioned for failing to comply with some regulations guiding listing on the Exchange.

The two companies are Clydestone (Ghana) Limited and Transaction Solutions (Ghana) Limited (TRANSOL).

According to the GSE, the companies had corrected the anomalies associated with their operations on the local bourse.

Clydestone has for instance submitted the unaudited financial reports for 2016 to the GSE.

A statement by the exchange and copied to Citi Business News indicated,
“Accordingly, the Exchange has lifted the suspension in trading of the shares of CLYD and TRANSOL that was imposed on the two companies with immediate effect.”

The other three companies are African Champion Industry Limited (ACI), Pioneer Kitchenware Limited as well as Golden Web Limited.

A statement announcing their suspension on Monday said that the five companies had failed to meet their continuing listing obligations in spite of several promptings to do so.

The obligations; the GSE explains include; failure to submit financial reports, non-payment of annual listing fees, failure to conduct Annual General Meeting, among others.

According to the Ghana Stock Exchange, the suspension of trading in the said companies will be in force until September 8, 2017 which is the deadline for the companies to rectify the anomalies.

Per the rules governing operations of listed companies, the delisting of an entity will become an ultimate decision if a company fails to rectify identified anomalies within a given period of time.

Conditions under which a company may be delisted among others include; failure to pay listing fees, provide timely update on audited financial reports and when management of the said entities do not conform to expected standards.

Even though he explains that the said companies had been suspended before, An Associate, Equity Trading at UMB Stockbrokers Kofi Busia Kyei tells Citi Business News the delisting may be the ultimate after failing to rectify all anomalies by the grace period.

SOURCE: GB&F/Citi



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