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The Zimbabwe Stock Exchange (ZSE) has suspended Cassava Smartech Zimbabwe shares for failure to publish financial results within the expected timeframe.
In an update Friday, ZSE chief executive Justin Bgoni said the embargo is effective from October 1, 2021.
“Cassava Smartech Zimbabwe Limited failed to publish audited financial statements for the financial year ended 28 February 2021 and remains in default,” he said.
“ In terms of section 40 (1) (d) of the Listing Requirements, Statutory Instrument 134 of 2019, the ZSE is obliged to suspend an issuer who fails to publish audited financial statements for a period of seven months after the end of a financial year,” he said.
A trading halt is a temporary suspension of trading for a particular security or securities at one exchange or across numerous exchanges.
Trading halts are typically enacted in anticipation of a news announcement, to correct an order imbalance, as a result of a technical glitch, or due to regulatory concerns.
Bgoni said the halt in trading of the issuer’s securities has been effected pending the outcome of an application for the suspension of trading in the issuer’s securities which was filed for consideration by the Securities and Exchange Commission of Zimbabwe.
“Cassava Smartech Zimbabwe Limited failed to publish audited financial statements for the financial year ended February 28, 2021, and remains in default. In terms of section 40 (1) (d) of the Listing Requirements, Statutory Instrument 134 of 2019, the ZSE is obliged to suspend an issuer who fails to publish audited financial statements for a period of seven months after the end of a financial year.
“Once an application for suspension has been approved by the Securities and Exchange Commission, it can only be lifted when an issuer has published its audited financial statements,” Bgoni said.
Several companies have been struggling to meet deadlines owing to the Covid-19 lockdown and associated disruptions.
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