The Johannesburg Stock Exchange on Friday suspended the listing of IT company 4Sight, over the failure to submit financial reports on time. The JSE has threatened to suspend several other listings for the same reason.
4Sight made headlines early in October after a director – Geoffrey Carter – resigned, accusing the board of the IT group of "Trumpism", Fin24 previously reported. Just days later, the chairperson Rama Sithanen resigned, to re-enter politics in Mauritius. In mid-October, a South African unit of the company was placed in business rescue.
4Sight is an investment holding company with subsidiaries in the IT sector, it is headquartered in Mauritius and listed on the JSE. Its subsidiaries are involved in autonomous and artificial intelligence solutions, machine learning, big data, augmented and virtual reality solutions, among others.
According to a shareholder notice issued on Tuesday October 30, four more directors resigned. Subsequently the group restructured its board, according to the notice.
A notice issued on October 31 said the reconstituted board of directors engaged with the JSE and auditors regarding the completion of a review process necessary to finalise its half-year results.
"The board expects that the review process will be completed on an expedited basis so as to allow for the publication of the interim results by latest 30 November 2019.
"Notwithstanding the circumstances that culminated in the reconstitution of the entire board, the JSE has not acceded to the request for an extension of time for the reconstituted board to procure the publication of the reviewed interim results," the notice read.
As a result the JSE has suspended the listing until the interim results – for the six-months ended June 30, 2019 – are published.
The JSE confirmed this in a separate notice issued on Friday, November 1.
"The JSE wishes to advise that the above-mentioned company (4Sight) has failed to comply with the JSE's Listings Requirements by not submitting its interim financial statements within the three-month period stipulated in the Listings Requirements. Accordingly, the listing of this company's securities has been suspended with immediate effect," the JSE's notice read.
The JSE on Friday fired warning shots to several other companies which have not submitted their financial results on time.
They include financial services group Ecsponent – which has until November 15 to submit a provisional report and November 30 to submit financial statements. Failing that, its listing will be suspended, the JSE said in a notice.
Chemical manufacturing company Accentuate, media company Tiso Black Star Group and All Joy Foods which makes sauces, have until November 30 to submit their annual reports.
Komati Basin Water Authority and the Trans-Caledon Tunnel Authority, which issue bonds under JSE debt securities, have both failed to submit their financial information within the seven-month period as stipulated in the JSE's debt listing requirements. Their registration is also under threat of suspension and possible removal, the JSE said in another notice issued on Friday.
"If the above issuers still fail to submit their financial information by 30 November 2019, the issuers programme and the listing of its securities may be suspended," the notice read.
Fin24 previously reported that the Trans-Caledon Tunnel Authority's audit report has also been delayed due to the late tabling of its annual reports.