Investors Trade 5.5 million FTN Cocoa Shares as NSE Lifts Embargo

By Dipo Olowookere

Investors having shares of FTN Cocoa Processors can now begin to trade them on the floor of the Nigerian Stock Exchange (NSE).

This followed the lifting of the suspension earlier placed on trading in the company’s equities over the refusal of the board to release the financial statements of the firm within the stipulated period.

On Tuesday, July 2, 2019, the stock exchange, in a circular with reference number: NSE/RD/LRD/MB34/19/07/02, announced the suspension of FTN Cocoa Processors alongside 10 other firms for non-compliance with Rule 3.1, rules for filing of accounts and treatment of default filing, rulebook.

The rule specifically states that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: (a) send to the issuer a ‘second filing deficiency notification’ within two business days after the end of the cure period; (b) suspend trading in the issuer’s securities; and (c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”

Last week, FTN Cocoa Processors released and filed its audited financial statements for the year ended December 31, 2018 as well as its first, second and third quarter financial statements for 2019 with the exchange.

In view of this, the NSE, in compliance with Rule 3.3 of the default filing rules, has lifted the suspension on the shares of FTN Cocoa Processors with effect from Tuesday, December 10, 2019.

According to the rule, “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange.

“The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension.”

Business Post reports that at the close of business today, shares of FTN Cocoa Processors were exchanged at 20 kobo per unit. A total unit of 5.5 million shares of the company were transacted during the day by investors on the NSE.

It was gathered that the units were sold from the 17 million offered for sale by holders of the company’s stocks and most of the transactions occurred in the afternoon after the market was informed of the latest development.