Listing compliance chokes off Falcon Gold Zimbabwe

By Wellington Zimbowa
REELING from a sharp decrease in gold sales in the year ended 30 September 2019, fragile Falcon Gold Zimbabwe has revealed plans for voluntary delisting from the Zimbabwe Stock Exchange, citing no recent benefits from listing on the local bourse.
“In the face of ongoing viability problems, the additional costs of being listed, with no compensating benefits, can no longer be borne by the company.
“Accordingly, Falcon Gold has decided to propose to shareholders it’s delisting from the ZSE,” read the company’s circular to shareholders.
The company notes that listing had become unfavourable in light of enduring legal, compliance and audit costs against a background of no success in capital raising through the sale of shares, at a time of repeated losses.
Gold sales for the year ended 30 September 2019 decreased by 1,061 ounces or 42% to 1,447 ounces, as compared to 2,508 ounces for the year ended 30 September 2018.
Falcon Gold now awaits approval of its delisting bid by 75 percent shareholder-excluding New Dawn’s subsidiaries’ Falcon Mines and Boundary shares-vote either in person or through representation by proxy to make it effective.
The mother company of Venice and Golden Quarry mines in Kadoma and Shurugwi, respectively noted that “The Offer of ZWL$0.13 per Falcon Gold share is deemed by the Board of Directors of Falcon Gold to be fair, supported by an independent, fair and reasonable opinion from the Independent Financial Advisor.”
Listing has been a torrid time for the company, with the national bourse forced to suspend its trading shares in 2019, until the release of due financials with the ban lifted in September 2020, upon meeting the ZSE sanction.
Over the years Falcon Gold Zimbabwe had become synonymous with failure to publish its financial statements, as per regulatory obligations among other listing requirements shortfalls.
Reported perennial losses and technical insolvency state have been blamed for the company’s sorry state.

Related posts

Leave a Comment