This is due to the company’s inability to comply with two requirements of the GSE.
In a statement issued on Tuesday (August 13, 2019), the GSE said the Produce Buying Company failed to publish financial results for the 2018 financial year and also failed to redeem a debt instrument issued earlier.
“The non-publication is in breach of the continuing listing obligations under the GSE Listing Rules,” the GSE said.
Even though the financial year of PBC, which was previously called Produce Buying Company, ended in September 2018, the GSE’s notice to suspend the company added that “PBC has also failed to redeem the Tranche P4 of its note program, which matured on December 6, 2018.
Part VI of the GSE Listing Rules outlines that a listed company shall comply with the continuing listing obligations and disclosure policy outlined in the Rules.
The prescribed sanctions for failing to abide by that regulation are specified in Rules 13(4)(c) and 13(4)(e) of the Listing Rules.
They empower the GSE to “suspend listing or compulsorily de-list securities where the company has failed to comply or is unable, or unwilling to comply for any reason whatsoever with the Exchange’s requirements on continuing listing obligations and also where the company has failed to comply with its Listing Agreement or other agreements with the Exchange, or has failed to comply with the Exchange’s Rules and disclosure policy as set out in Parts VI and VII of the Rules.”
This is also coming after the staff of PBC protested against their Managing Director, Kofi Owusu-Boateng, and the Board Chairman, Charles B. Ntim, over allegations of mismanagement.
Last Tuesday, August 6, 2019, the staff picketed at the company’s head office in Accra to register their displeasure.
They accused the board and management of failing the staff and the company. They called on the appointing authority to revoke their appointments and bring in capable hands to revive the company.