The Zimbabwe Stock Exchange (ZSE) has announced the suspension of Cassava Smartech Zimbabwe Limited (CSZL) shares from trading on the bourse due to failure by the technology solutions company to publish audited financial statements for the year ended 28 February 2021.
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.
“The Zimbabwe Stock Exchange Limited (“ZSE”) notifies the investing public that trading in the securities of Cassava Smartech Zimbabwe Limited (CSZL.zw) will be halted with effect from 01 October 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 28 February 2021 and remains in default,” reads the statement by ZSE.
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.
Cassava has attributed the delay in releasing the financial statements to the disruption by the COVID-19 lockdown.
In May, the ZSE granted Cassava an extension approval and agreed the company published results on or before 30th of June 2021.
“Cassava Smartech Zimbabwe Limited (the “Company”) wishes to advise our shareholders and the investing public that due to COVID-19 induced circumstances, we will publish the Company’s annual audited financial statements on or before the 30th of June 2021. The Company has been granted an extension approval by Zimbabwe Stock Exchange for the delay. Any inconvenience caused to our valued stakeholders is sincerely regretted,” said Cassava.