The Zimbabwe Stock Exchange (ZSE) Friday stopped Cassava Smartech Zimbabwe Limited from trading on the bourse after an application by the Securities and Exchange Commission of Zimbabwe for the diversified technology group to be suspended.
In a statement yesterday, ZSE chief executive Justin Bgoni said the application for Cassava’s suspension was a result of the company’s failure to publish financial statements for the year ended February 28, 2021. Bgoni said:
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The Zimbabwe Stock Exchange Limited (“ZSE”) notifies the investing public that trading in the securities of Cassava Smartech Zimbabwe Limited will be halted with effect from October 1, 2021.
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.
He pointed out that 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. Bgoni added:
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.
In a statement after the announcement by the ZSE, Cassava, which is owned by Zimbabwe’s billionaire businessman Strive Masiyiwa, said it would publish its results by October 18, 2021, and attributed the delay to publish to the need to resolve “certain technical accounting” matters.