JSE warns listed firms about late filings
Published:Wednesday | June 26, 2024 | 12:05 AM
The Jamaica Stock Exchange, JSE, is warning listed companies that are tardy with the filing of their financial reports that their shares will be suspended, following the rare action it took against two late filers in early June.
The two companies have since produced their year-end reports, and they along with a third company, which was cited for rule breaches, had their suspensions lifted last Friday.
Late filings continue to be a significant issue for the exchange.
“It is definitely a problem with the audited financial statements. We have rules governing the filings of these statements and you would have seen where we have suspended companies that have not filed within time, and within the extended period,” said Managing Director of JSE Group Marlene Street Forrest at the company’s annual general meeting in Kingston.
More suspensions could occur “in the event that they do not file within the period given, in accordance with the JSE rules,” she added.
On Friday, the JSE resumed the trading in shares of EduFocal Limited and Equityline Mortgage Investments Corporation. Both entities were suspended on June 4 for failing to file audited financial reports for the December year end. The exchange allows companies a grace period to file their audited financials before they are considered overdue, and after that, companies have three months to file or face suspension. According to the JSE Rules Book rule 408: Companies with audited annual financial statements which are 90 days overdue, shall have trading in their shares suspended until the reports are submitted to the exchange.
The third company, iCreate Limited, was suspended in January for violating rule 505, which requires junior market companies to appoint a mentor from the wider business community.
iCreate resumed trading just before the six-month mark, thereby avoiding delisting as outlined in Rule 411, note D: Any company with shares which have been suspended from trading on the exchange for more than 180 days, shall be automatically delisted. In the first trading days since resumption, iCreate’s shares climbed by 45 per cent from $0.41 to $0.60, with over 3.6 million units traded. However, the stock remains below its high of $1.10 from a year ago.
EduFocal, trading under the ticker symbol LEARN, saw its shares drop by 22 per cent on the first day of resumed trading, with 1.6 million units traded worth just over $1 million. EduFocal provides online tutorials to students. Meanwhile, Equityline, which trades as ELMIC, saw no change, with no trades occurring in the preference stock. The company offers mortgage investment services in Canada.