PSE says will start process of delisting Abra Mining
THE Philippine Stock Exchange Inc. (PSE) on Tuesday said it will maintain the trading suspension on Abra Mining and Industrial Corp.’s (AR) shares and will proceed with the initiation of delisting proceedings.
The PSE said it “is left with no alternative move” after the Securities and Exchange Commission’s (SEC) Markets and Securities Regulation Department (Mrsd)confirmed “that there were indeed illegally issued shares circulating on the market and its resolution revoking AR’S registration statement and corresponding permit to sell securities.”
“In view of SEC ’s findings contained in its April 8, 2024 decision, minority stockholders of AR may, individually or as a group, consult their counsel and seek legal advice on available remedies under existing laws,” the PSE said.
It cited Republic Act (RA) 11765 or the Financial Products and Services Consumer Protection Act (FPSCA), which aims to provide protection to financial consumers against fraudulent practices and provide them with an expeditious remedy for enforcement of claims.
The SEC has the authority to adjudicate complaints under FPSCPA such as damages not exceeding P10 million.
Abra Mining shares were last traded on March 3, 2021 and closed at P0.0046 apiece.
The SEC has slapped a fine of more than P560 million on Abra Mining and Industrial Corp. for the unauthorized and fraudulent trading of unissued and unlisted shares from 2015 to 2019.
The violations pertain to the illegal issuance of Abra Mining’s shares and issuance of shares for a consideration less than the stock’s par value.
In a decision promulgated on April 8, the SEC’S MSRD found Abra Mining guilty of violating Section 26 of RA 8799, or the Securities Regulation Code, and Section 61 of RA 11232, or the Revised Corporation Code.
Also found liable were company president James G. Beloy; corporate secretary Amelia G. Beloy; directors Conde Claro C. Venus, Carmelo Rafael D. Tansengco, Premy Ann G. Beloy, and Joel G. Beloy; and former director Belinda T. Gaskell.