The Nigerian Stock Exchange (NSE) has advised investors “to trade with caution” on the shares of Medview Airline Plc and 12 others.
The reason for raising the red flag, according to the exchange, is because the companies have failed to give details of the financial statements as required by the rules for joining the stock market, which will provide necessary information to the investing community on action to take about their securities.
In a notice posted on its website on Wednesday, the NSE listed the names of the other firms as Aso Savings and Loans Plc, Deap Capital Management & Trust Plc, DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, Goldlink Insurance Plc, and International Energy Insurance Plc.
Others are Resort Savings & Loans Plc, Staco Insurance Plc, Standard Alliance Insurance Plc, UNIC Diversified Holdings Plc, Union Dicon Salt Plc and Union Homes Savings and Loans Plc.
In the disclosure, the exchange said the coys have failed to comply with its directive to issue a press release as set forth in the Deficiency Filing Notice (DFN) issued to them.
“The above-listed companies’ Unaudited Financial Statement (UFS) became due on June 29, 2020, being the extended due date as granted by the exchange.
“By virtue of non-filing of the UFS by the due date, the companies have violated Rule 1.1.2, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange (Issuers’ Rules),” the exchanged said.
According to the notice, the companies were sent a message by the NSE to issue a press release to explain to the public the reason(s) for the delay in filing their financial results and announce “the anticipated filing date, or state that the company is unable to indicate an anticipated filing date, and reasons for such inability to indicate the anticipated filing date.”
“The defaulting companies failed to comply with the exchange’s directives set forth in the DFN and in light of the companies’ continued breach of Rule 2.2.1 of the Rules, and in line with the requirements of Rule 2.2.2, the exchange hereby advises the investing public as follows:
“DFN has been issued against the aforelisted companies; and investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them.
“The investing public is further advised that the exchange will continue to engage with these companies and may take the following additional steps should they fail to comply, and file their UFS within the 90-day cure period stipulated by Rule 3.1 of the Rules, i.e. September 27, 2020:
“Send to the aforelisted companies a ‘Second Filing Deficiency Notification’ within two business days after September 27, 2020; and suspend trading in the companies’ securities,” the circular said.
