Oakbay faces trading suspension blow on JSE
THE JSE is again on the verge of suspending the trading of Oakbay Resources and Energy after the company earlier this month lost its JSE sponsor, the River Group, Oakbay told its shareholders yesterday.
The River Group, which describes itself as a successful JSE sponsor, designated adviser and international corporate finance boutique, cut ties with Oakbay, citing association risk, surrounding the company and its shareholders.
The JSE almost suspended Oakbay last year after it struggled to secure a sponsor following the resignation of its previous sponsor, Sasfin Bank, in June. The River Group came on board in September last year.
Oakbay recently suffered other resignations. Mark Pamensky, an independent non-executive director and chairman of the company’s audit committee, resigned in May. Oakbay’s transfer secretary, Terbium Financial Services, resigned last week.
Oakbay, which received notice the JSE was considering a trading suspension, said it was considering “various alternatives available to it”.
JSE general manager of issuer regulation André Visser said yesterday the exchange had taken note of the resignation of Oakbay’s sponsor and transfer secretary.
“The appointment of these parties is mandatory in terms of the listings requirements. The JSE also noted the resignation of the independent non-executive director and audit committee chairman. In light of these developments, the JSE can confirm it’s considering possible suspension,” said Visser. Oakbay’s shares remained at R5.80 yesterday.
A logo of Oakbay Investments at the entrance to its offices in Sandton. The embattled company is facing a possible suspension from trading on the JSE.