Falcon Gold Zimbabwe Limited listing face termination from the Zimbabwe Stock Exchange (ZSE) as it failed again to publish audited financial results for the year ended 30 September 2019.
The miner faced the same challenge last year failing to publish audited financial results for the year ended 30 September 2018 and reportedly blamed operational challenges worsened by inadequate foreign currency allocations by the Reserve Bank of Zimbabwe (RBZ) a catastrophic engineering failure which happened in December 2017.
ZSE, Chief Executive Officer, Justin Bgoni said “The Zimbabwe Stock Exchange Limited (“ZSE”) hereby notifies the
investing public of the voluntary suspension from trading in shares of Falcon Gold Zimbabwe Limited with effect from 02 March 2020 pending publication of audited financial results for the year ended 30 September 2019 and a circular to shareholders regarding the proposed termination of listing.”“In terms of Section 9 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the Shareholders and the ZSE during the suspension until finalisation of the termination of listing.”
Falcon Gold has been facing challenges in recent year, recording a $23 917 228 loss in 2018.
The mining company has been on the move to recapitalise since last year, with the group secretary Q Nkomo giving a cautionary statement.
“The Directors of Falcon Gold Zimbabwe Limited wish to advise its Shareholders and members of the public, that the Company is still contemplating a Capital Raise which, if successfully concluded, may have an effect on the price of the Company’s shares,” Nkomo said.
“The Directors, therefore, advise the Shareholders of Falcon Gold Zimbabwe Limited, and the public, to exercise caution and to consult their professional advisors when dealing in the shares of the Company.”
In the current suspension Bgoni said, “At the Company’s request, the ZSE sought and was granted permission to suspend trading in Falcon Gold Zimbabwe Limited’s shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act [Cap 24:25].”