The Nigerian Exchange Limited (NGX) has granted 24 months for Multi-Trex Integrated Foods Plc to comply with the free float requirement.
Multi-Trex disclosed this in a statement on Thursday signed by its Secretary, Sogunle Adebisi Adekunle.
It said the approval followed its application to the NGX for additional time to meet the prescribed free float threshold, after its public shareholding fell below the minimum requirement.
“In view of the above, the Company applied to the NGX for an extension of time to comply with the free float threshold.
“We are pleased to announce that the NGX Regulation Company (NGX RegCo) has conditionally granted the Company a 24-month moratorium, ending on January 14, 2028, to take the necessary steps to restore the free float to the required level,” Multi-Trex stated.
It noted that since 2022, it has been engaged in a comprehensive business recovery programme following a seven-year cessation of operations.
It hinted that as part of its capital restoration strategy, Messrs N-Foods Universal Concept Limited injected the required capital to settle the Company’s obligations to the Asset Management Corporation of Nigeria (AMCON).
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This strategic intervention resulted in N-Foods Universal Concept Limited acquiring 70 per cent of the Company’s issued share capital.
It explained that while the recapitalisation successfully stabilised the company, it also led to a contraction of its public free float.
Pinnacle Daily can report that Multi-Trex’s 2024 Audited Financial Statements showed its free float stood at 7.23 per cent, valued at N117,457,100.64, which is below the NGX Main Board requirement of either 20 per cent of issued share capital or a market capitalisation of N20 billion.
“In accordance with the directive of NGX RegCo, the Company hereby notifies its shareholders that: If the Company fails to achieve the required free float threshold within the extension period ending January 14, 2028, NGX RegCo may, at its discretion, suspend trading in the Company’s securities or commence the process of regulatory delisting from the Exchange,” Multi-Trex stated.
It is assured that its board of directors will be committed to maintaining the company’s listing status, stressing that its management is currently exploring various strategic options to increase the free float within the approved timeframe.
“We will continue to update the market on our progress as we work toward meeting this regulatory benchmark.
“We thank our shareholders for their continued patience and support during this recovery phase,” Multi-Trex added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
