Caption: Jinita Prasad. File Photo.
The South Pacific Stock Exchange (SPSE) placed a suspension in Future Forests (Fiji) Limited shares (FFF) and notes (FFFN) before the trading session opened at 2.30pm this afternoon. The suspension of the two securities follows a failure by the company to release its audited financial statements to the market within three months from its financial year ending 30th June 2014. As entailed in Section 6.29 of the SPSE Listing Rules, FFF should have released its audited financial statements by 30th September 2014.
SPSE Chief Executive, Ms Jinita Prasad said “According to FFF, the delay in submitting the annual financial statements has been caused by a change required by the company auditors in the company’s reporting structure for its inventory valuation which could possibly affect the fair market value of FFF. However, in maintaining the integrity of the market, SPSE believes that trading in FFF shares and notes should be suspended until the company is in a position to release its audited financial statements”. She added that SPSE Listing Rules aim to provide investors and shareholders access to sufficient and timely information to allow them to make informed investment decisions and where a company fails to comply with these rules, SPSE as the frontline regulator will either censure, fine or suspend the company depending on the nature of the breach.
The suspension has been placed by virtue of Section 7.5 (vi) of the SPSE Listing Rules which stipulates that:
“Circumstances where the SPSE may halt or suspend trading for the protection of investors or the maintenance of an orderly market may include the following: when the listed company fails to lodge the annual financial statement with the SPSE within three months from the financial year end…”
The SPSE would like to reiterate that the suspension in FFF shares and notes will be lifted as soon as the Company releases its audited financial statements to the market.
The licensed broker representatives will not be able to execute FFF orders until the suspension is lifted.
Should you require any further information on the issue, please do not hesitate to contact us.