Information Disclosure: Cautionary statements
CAUTIONARY statements are announcements warning/advising shareholders to exercise caution when dealing in securities of the company they are invested in until detail regarding that announcement has been issued out.
They are therefore forward looking statements regarding a company’s likely outlook, expectations, forecasts, estimates, targets, business plans and other statements of future events. They highlight events whose impact might have a bearing on the share price of a listed company. The statements should contain all available details regarding ongoing negotiations and a warning to shareholders to exercise caution when dealing in the underlying shares until such time as the result of the negotiations is known.
Cautionary statements are issued by listed companies with the approval of an Exchange to help investors make informed decisions. Investors become alert upon realising that the shares of a company they are invested in are trading under a cautionary.
This also gives investors an opportunity to manage underlying potential risks. Every listed company is therefore required to publish such announcements as soon as it is in possession of any material price sensitive information which could lead to material movements in the ruling price of its securities. In all instances, where a cautionary announcement has been published, the company must publish a progress report at least every 21 days until negotiations have been finalised.
Investors should however note that there are no assurances that the expectations will be attained. It is possible that the actual results may differ materially from those indicated in the statement. Listed companies are ultimately required to inform all shareholders, accordingly, of the outcome of the negotiations, whether successfully completed or terminated.
When in doubt, investors are advised to consult their professional Advisers before dealing in securities under cautionary.
Upcoming AGMs/EGMs Ariston Holdings Limited, Royal Harare Golf Club, 27 Feb, 1600Hrs
Amalgamated Regional Trading Holdings Limited, 202 Seke Road, Graniteside, 27 Feb, 1400Hrs
CAFCA, 54 Lytton Road, Workington, 1 March, 1200 Hrs