Sunday, November 27, 2022

Seven months later, Shumba stock stuck on BSE default board

The day shall come when investors at the Botswana Stock Exchange (BSE) will once again be able to buy and sell securities of energy company – Shumba Energy Limited. That day is not today. It will only be after the energy development company publishes its audited financial statements for the year ended 30 June 2021, atleast according to the listing requirements of the local bourse.

The financials in question were due for publication on 30 September 2021 in terms of section 5.6 (b) of the BSE Listing requirements and now seven months after it first placed the energy company on its default board, the local bourse says it has decided to keep it there pending the publication of the results.

The BSE says placement of securities on the default board is done to highlight to investors the noncompliance of the applicable issuers.

“Shumba’s securities will therefore remain on the Default Board until such a time that the Company has duly submitted and published the outstanding audited financial statements”.

Apart from failure to publish the financials, Shumba attracted controversy when it reported mass resignation by non-executive directors leading to non-compliance with the BSE equity listings requirements.

The Stock Exchanges says on 21 February 2022, Shumba reversed the resignation of the Directors to comply with the Requirements by appointing an interim Board which shall remain in place whilst the Company concludes the re-domiciliation transaction.

Despite this strategic move, BSE says, “The BSE has resolved to keep the Company’s securities on the DB pending the publication of the audited financial statements”.

The BSE quoted Shumba is developing a portfolio of projects servicing energy poor Southern Africa nations with emphasis on those with the least energy access. Established in 2011, the company’s main activity areas include renewable energy, fuels, trading and mining.

RELATED STORIES

Read this week's paper