Royal Exchange Plc has successfully secured approval from the Securities and Exchange Commission (SEC) to proceed with the signing ceremony for its proposed right issue involving 4.116 billion ordinary shares, each valued at 50 kobo. This significant development marks a strategic move for the company and is detailed in a notice addressed to the Nigerian Exchange Limited and the investment public, as obtained by Infostride News.
As outlined by the company, the right issue will be structured with an offer of four new ordinary shares for every five ordinary shares held by existing shareholders. The qualification date for the rights issue has been set for March 6, 2023, contingent upon the SEC’s approval of the executed offer documents. An additional key detail in the announcement is the opening of the application list, scheduled for November 29, 2023, or any alternative date sanctioned by the Commission. The application period is set for a maximum duration of 28 days.
In the communication signed by Irene Chkukelu, Mazars Ojike, and Partners, who serve as the Company Secretary of Royal Exchange Plc, shareholders are advised to anticipate the distribution of the rights circular, facilitated by the company’s registrars. Application forms will be made accessible on both the company’s and the registrars’ websites, streamlining the process for interested parties.
Addressing the earlier suspension imposed on Royal Exchange Plc, it is noteworthy that the regulatory subsidiary of the Nigerian Exchange (NGX) Group Plc, NGX Regulation Limited, recently lifted the suspension. This move followed the company’s resolution of issues related to the submission of financial statements, which had prompted the suspension on July 11, 2023.
Royal Exchange Plc, operating as an asset management company in Nigeria and providing insurance protection to its clientele, encountered the trading suspension due to the failure of its board to submit financial statements for public review. However, following the subsequent submission of the overdue financial accounts, the regulatory embargo was lifted, allowing the resumption of trading activities.
The suspension was initiated in accordance with a circular issued by NGX Limited, citing non-compliance with Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules). This rule stipulates that if an issuer fails to file relevant accounts within the Cure Period, trading in the issuer’s securities will be suspended. The suspension was lifted in accordance with Rule 3.3 of the Default Filing Rules, which specifies that the exchange will lift the suspension upon receipt of the relevant accounts, provided they comply with all applicable rules.
The disclosure from NGX Limited emphasized Royal Exchange Plc’s compliance with the submission of outstanding financial statements, stating, “Given the company’s submission of the outstanding financial statements, and under Rule 3.3 of the Default Filing Rules, which states that 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.”
In conclusion, shareholders, trading license holders, and the investing public are duly informed that the suspension on trading Royal Exchange Plc’s shares was lifted on September 13, 2023, signaling a positive turn of events for the company in the financial market.
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