The Nigerian Stock Exchange on Wednesday, 8 July disclosed that the 13 companies have failed to comply with the directives of the Exchange to issue a Press Release as stated in the Deficiency Filling Notice (DFN) issued to the companies.
The underlisted companies have failed to submit unaudited financial statements, due on 29 June 2020 (which was an extended due date) to the exchange.
Among the defaulting companies are Union Dicon Salt Plc and FTN Cocoa Processors Plc. These two companies are yet to file their financial statements for the period ended 31 December 2019.
This was contained in a press release signed by the Exchange’s Head, Listings Regulations Department, Godstime Iwenekhai on Wednesday 8 July.
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“These companies have violated Rule 1.1.2, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“the Rules”), which provides that “Every Issuer shall file its unaudited quarterly accounts not later than thirty (30) calendar days after the relevant quarter, and publish it within five (5) business days after the date of filing, in at least two (2) national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. An electronic copy of the publication shall be filed with The Exchange on the same day as the newspaper publication.”
Pursuant to the provisions of Rule 2.2.1 of the Rules, The Exchange had issued a DFN to the aforementioned companies, however the defaulting companies failed to comply with The Exchange’s directives set forth in the DFN.
In light this continued default by these companies, the Exchange is advising “Investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them.”
According to the press release, the Exchange will continue to engage with these companies. Nevertheless, if the companies fail to file the unaudited financial statements within the ninety-day cure period stipulated by Rule 3.1 of the Rules, i.e. 27 September 2020: the Exchange will “suspend trading in the companies’ securities” after it has issued the companies “Second Filing Deficiency Notification.”