Sam-Woode Limited delisted from Ghana Stock Exchange due to cessation of operations
The Ghana Stock Exchange (GSE) has announced the compulsory delisting of Sam-Woode Limited (SWL) from the Main Equity Market of the Exchange. The decision was made in light of the company’s cessation of operations. SWL was taken off the Official List at the end of trading on Friday, April 14, 2023.
This development is rooted in Rule 13(1) of the GSE’s Listing Rules, which empowers the Council to suspend or cancel a listing if it deems necessary to protect investors and ensure an orderly market. In particular, Rule 13(4)(a) of the GSE’s Listing Rules provides for delisting a company when it has ceased to be an operating company.
SWL had informed the Exchange of its intention to delist and restructure in September 2020 after it had suspended its operations, citing the introduction of the new Ghana Education Service curriculum as the reason for its decision. This development had resulted in the subsequent obsolescence of its textbook inventories and the stoppage of its book sales operations. Consequently, its shareholders had voted to delist from the Exchange and restructure the company.
In September 2020, the Exchange had suspended the listing status of SWL based on Rule 13(4)(a) of the GSE’s Listing Rules, which provides for delisting a company when it has ceased to be an operating company. Since then, the Exchange had followed up with SWL several times to commence the voluntary delisting process, but the company had failed to do so.
The GSE Council has now directed the compulsory delisting of SWL to ensure an orderly market, and the decision is expected to protect investors’ interests. While delisting is a drastic step, it underscores the importance of maintaining a level playing field for all market participants and the need to adhere to established regulations.
The GSE has long been committed to maintaining a transparent and efficient market that is attractive to both domestic and foreign investors. The Exchange’s regulatory framework and listing requirements are designed to protect investors’ interests, ensure adequate disclosure, and maintain market integrity.
The delisting of SWL is not expected to have a significant impact on the overall performance of the GSE. However, it underscores the importance of compliance with listing rules and regulations and the need for companies to ensure that they meet the Exchange’s operational requirements.
The GSE’s decision to delist SWL highlights the Exchange’s commitment to maintaining an orderly and transparent market that is conducive to investment. The GSE remains committed to ensuring that all market participants adhere to established regulations and that investors’ interests are protected at all times.
