Two companies suspended from trading of the shares last year due to violations of listing obligations to the Ghana Stock Exchange (GSE), have been able to escape delisting.
Last year, Cocoa Processing Company (CPC), Pioneer Kitchenware and Aluworks were given notice of delisting from the bourse and trading in their shares was also suspended.
Information available to Goldstreet Business indicates that both CPC and Aluworks were granted waivers to continue trading following some successful interventions deployed in turning around the fortunes of their respective operations.
Pioneer Kitchenware however was expected to be delisted from the bourse at the end of 2018, since the company has failed to make any progress in improving its operational performance and listing obligations to the minimum standards set by the operators of the bourse despite several notices to do so.
However, by Thursday, January 10, the company was still listed and the GSE itself has not made any public announcement as to any change in its status.
According to a statement issued by GSE on Friday, Aluworks has provided the Exchange with detailed plans for the recovery strategy of the company.
As part of the strategy, the Social Security and National Insurance Trust (SSNIT), a key shareholder in Aluworks has approved an interim financing package for the company, which is currently at implementation stage.
The signing of a subscription agreement for an investment by Caitlyn Limited – an existing shareholder – in Aluworks shares is also deemed imminent.
Cocoa Processing Company
After suffering more than one year suspension from trading on the Ghana Stock Exchange, the CPC Limited is now able to trade once again on the stock market.
This was made possible when CPC met its listing obligations after submitting to the Ghana Stock Exchange (GSE) and the Securities and Exchange Commission (SEC), its audited financial statements for the years 2015, 2016 and 2017.
The company was suspended for violating listing obligations relating to financial performance disclosures, which was then extended to December 31, 2018 with a notice that it would be delisted if it failed to discharge the listing obligations.
CPC was first suspended from trading its shares following a notification letter from the GSE dated August 29, 2017, due to breach of the continuing listing obligations under rules 41 (2) and 42 of the GSE’s Listing Rules.
The reasons assigned for the suspension were;
- Non-submission of Annual Reports containing the audited annual financial statements for 2015 and 2016 and the Financial Statement for Quarter 3 of 2017
- Failure to conduct Annual General Meetings since 2015.
Although, the Company has failed to make profit for a long time, its losses has been reducing.
In 2014, the Company recorded an operational loss of $12,111,647 but this reduced to $3,903,451 in 2015. In 2016 the Company’s operational losses amounted to $7,026,446 while the loss recorded in 2017 was $5,092,170.
With the increase in confectionery sales within the last one year, management estimates that the company would need $8.5 million in new investment to embark on a project that would enable it meet the growing demand for its products in Ghana and also to reach other markets within the rest of Africa.