GSE suspends CPC, reinstates two other equities

The Ghana Stock Exchange (GSE) has suspended trading in the shares of cocoa grinder, the Cocoa Processing Company Limited (CPC), with effect from Wednesday, August 30.

A statement from the exchange said CPC failed to meet “continuing listing obligations in spite of several promptings.”

“The obligations are failure to submit financial reports and failure to conduct Annual General Meeting,” it said.

It explained that the suspension of trading in CPC will be in force until September 13, “which is the deadline for the company to rectify the anomalies.”

“Failure to do so will attract further sanctions as per the GSE Listing Rules,” it said.

The suspension of CPC from trading now brings to four the number of companies that have temporarily been denied the opportunity to trade shares on the exchange.

Earlier, five companies, African Champion Industry Limited (ACI), Clydestone (Ghana) Limited (CLYD), Golden Web Limited (GWEB), Pioneer Kitchenware Limited (PKL) and Transaction Solutions Limited (TRANSOL), were suspended by the exchange for similar reasons.

However, the GSE later reinstated Clydestone and TRANSOL onto the exchange after they had “rectified all the anomalies that led to their suspension.”

{loadmodule mod_banners,Nativead1}

Good news for CPC staff?

Although a blow, the suspension comes months after unionised staff of the ailing cocoa processor requested that the company be delisted from the Stock Exchange to pave the way for increased investments in it.

Given that CPC’s publicly traded status makes it illegal for the government to bail it out of its current financial challenges, the staff said the company’s fortunes will remain in the negative until its status was reversed.