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Delta Property Fund’s founding CEO Sandile Nomvete and other key executives resigned with immediate effect. Photo by Gallo Images / Financial Mail / Robert Tshabalala
The beleaguered real estate fund Delta has now suspended its shares in the JSE.
The real estate investment trust, founded by Sandile Nomvete, withdrew its 2020 financial statements for the first time last week, causing its share price to drop, losing 31% the day after an announcement blaming its exes. executives of irregularities.
The former executives, who left the company in August, have denied allegations of wrongdoing in acquisitions and embezzlement.
In the days following that announcement on Dec. 9, Delta’s stock price recovered some of the losses, increasing to 35 cents on Tuesday afternoon. But this is a far cry from the highs of R9.14 that the company once traded at in March 2017.
However, the decision to suspend the listing of its shares was initiated by the JSE requirements due to the withdrawal of the financial statements. The suspension took effect immediately.
Delta said its board had also hired the JSE prior to this to consider a suspension of its listing, but the country’s main stock exchange could not immediately approve its request at the time.
“The board agrees and supports the suspension, the ultimate goal is to protect investors and allow for accurate price formation. The board believes that the suspension is in the best interest of shareholders and the company,” Delta wrote in the announcement. .
He said his board views the suspension as a temporary measure until Delta publishes its restated 2020 financial statements and interim results for the six months ended August 31, 2020.
The company aims to publish the 2020 financial statements no later than February 28, 2021, after which it will request the lifting of the suspension.
Compiled by Londiwe Buthelezi
