Falcon Gold opts out of Zimbabwe Stock Exchange

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By Alois Vinga

The Zimbabwe Stock Exchange (ZSE) has moved to suspend Falcon Gold Zimbabwe (Falgold)’s shares at the mining giant’s request.

Speaking on the move, ZSE chief executive, Justin Bgoni confirmed this was Falgold’s wish.

“At the company’s request, the ZSE sought and was granted permission to suspend trading in Falcon Gold Zimbabwe Limited’s shares by the Securities and Exchange Commission of Zimbabwe,” he said.

The latest development is in line with the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act [Cap 24:25].

As a result, Falcon Gold Zimbabwe Limited will cease to trade its shares with effect from 02 March 2020 pending publication of audited financial results for the year ended 30 September 2019 and a circular to shareholders regarding the proposed termination of listing.

However, in terms of Section 9 of the ZSE Listings Requirements, the company is expected to continue to discharge its obligations to the Shareholders and the ZSE during the suspension until finalisation of the termination of listing.

Market watchers speculate that the gold producer’s decision to officially communicate to the bourse about delisting could be linked to that an earlier proposed capital raise has been futile.

Falgold has in recent weeks been issuing cautionary statements advising that it was contemplating “a capital raise initiative which if concluded may have a direct impact on the price of its shares”.

Indications are that the company was looking at around US$25 million.