The Philippine Stock Exchange said Monday it initiated the delisting procedures against agriculture company Calata Corp. for committing multiple violations of the disclosure rules.
PSE said in a notice posted on its website it had initiated involuntary delisting procedures against Calata after it committed 55 disclosure violations which under the exchange rules constituted grounds for delisting.
Calata corporate secretary Jose Marie Fabella said in a text message the company would follow the due process. Fabella said the delisting procedures had nothing to do with the company’s business operations which the management was continuously expanding.
PSE said Calata committed 29 violations of section 13.1 of its disclosure rules from Nov. 29, 2016 to June 20, 2017.
Section 13.1 of PSE disclosure rules provide that a listed firm should file with exchange within a period of five years any direct and indirect ownership change of its directors and principal officers.
Calata also committed 26 violations of section 13.2 of the disclosure rules which prohibits directors or principal shareholders of a listed firm from trading the company’s stock when a material non- public information is obtained and up to two two full trading days after the price sensitive information is disclosed.
Trading of Calata stock is currently suspended for a period of one month starting June 30 due to multiple violations of PSE’s disclosure rules. Share price of Calata last closed at P2.04.
PSE said Calata would be given opportunity to explain its side by submitting a memorandum or position paper and by participating in a hearing. “The exchange shall consider the explanation of the company during the hearing and in the memorandum or position paper before promulgating a decision on the matter,” PSE said.
PSE previously delisted other companies such as Alphaland Corp., Marsteel Consolidated Inc. and Gotesco Land Inc. for violating rules of the exchange.