CFI Holdings has been suspended from trading its shares on the Zimbabwe Stock Exchange (ZSE) to allow for the publication of audited financial statements for the year ended 30 September 2015 and investigations into trades conducted during the closed period.
In a statement the ZSE says it temporarily halted trading in the Company’s shares with effect from 27 January 2016 pursuant to Paragraph 4.13.2 of the ZSE Automated Trading System Rules and Procedures pending finalisation of the due processes. But the suspension of trading in the Company’s shares was effected on 29 January 2016.
“The Zimbabwe Stock Exchange (“ZSE”) hereby notifies the investing public of the suspension from trading of CFI Holdings Limited’s shares to allow for the publication of audited financial statements for the year ended 30 September 2015 and investigations into trading done during the closed period.”
According to ZSE, a trade of the Company’s issued shares, which were executed on the ZSE during the closed period, were reported to the Securities and Exchange Commission of Zimbabwe.
Meanwhile, in terms of Paragraph 1.8 in Section 1 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the Shareholders and the ZSE after the suspension.
CFI Holdings last year sought to raise $20 million through a rights issue in an effort to resolve capitalisation challenges across its SBU.
The group also disposed of Langford Estate to Fidelity Life in an effort to clean the balance sheet through the extinguishment of $16 mln debt.
CFI has since dollarization experienced significant financial strain largely caused by expensive borrowings, impact of ageing equipment and infrastructure on efficiencies and overheads which are not adequately aligned to the low capacity utilisation. FinX
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