ZSE lifts CFI Holdings suspension

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Tadiwa Musiyiwa 

CFI Holdings is set to resume trading of its shares on the Zimbabwe Stock Exchange next week.

In a statement, ZSE Chief Executive Office Justin Bgoni said they had lifted the suspension in the trading of CFI Securities and trading will commence on Monday 11 October, 2021.

Bgoni said the ZSE is satisfied that the CFI has regularized its corporate governance shortcomings and now meet the bourse’s listing requirements

“Whilst the issue of the free float remains unresolved, the ZSE has given CFI a moratorium of five years to address the free float requirements” he said.

The ZSE boss said they will be reviewing progress on the regularisation of this requirement on a regular basis.

During the subsistence of its suspension, Bgoni said, CFI demonstrated commitment to its listing on the ZSE by ensuring timely compliance with its continuing listing obligations and reporting cycles.

CFI was suspended from trading on the ZSE on 2 January, 2018, for failure to comply with the free float requirements and some corporate governance related matters under the ZSE Listing Requirements.

The free float requirements are that a listed company is required to have a minimum of 300 shareholders, and the minority shareholders must hold a minimum of 30% of the total shares in issue.

The number of shares held by CFI minorities was less than the minimum of 30% of the total.

The ZSE had requested CFI to address governance related matters regarding the appointment of a substantive Board Chair, Chief Executive Officer and Finance Director.

During the time of suspension of its shares, the Group was also requested to appoint independent non-Executive Directors who were not affiliated with any of the company’s shareholders.

The beginning of October also saw Cassava Smartech Zimbabwe Limited being suspended from trading on the main bourse following its failure to publish audited financial statements for the year ended 28 February 2021.

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