Getbucks Microfinance Bank Limited has settled a full delisting from the Zimbabwe Stock Exchange (ZSE) and subsequent migration to the Victoria Falls Stock Exchange (VFEX) after previously backtracking on the decision.
The company joins several companies that have fled the ZSE for the VFEX in recent months citing the need to raise capital in US dollars.
The move, if successful is expected to assist Getbucks realize its US$ 5 million recapitalization plans to meet the required minimum capital threshold set by the Reserve Bank of Zimbabwe.
“Further to the cautionary announcement dated 20 December 2022 advising of termination of the process of migration of the Company’s listed securities from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX) shareholders are advised that the Company is now considering a full delisting of its securities on the ZSE,” said Getbucks.
“Shareholders are also advised that recapitalization negotiations are still ongoing. The full impact of the delisting and recapitalization is still being determined and if successful may have material effect on the price of the securities.”
The Micronance Bank’s core capital position closed the six months to June 2022 at ZW$332 million translating to US$ 1 million at the foreign currency auction rate, which was below the current minimum regulatory requirement of ZWL equivalent to US$5 million.
At the tail-end of last year Getbucks said it attained new lines of credit and had since started issuing USD loans which it expects to improve profitability.
Investment in technology will continue to be the core focus of the Micronance Bank’s strategy to deliver financial service as it seeks to grow its transactional revenue.