Abra Mining to be delisted – bourse
HE Philippine Stock Exchange Inc. (PSE) is initiating delisting proceedings against Abra Mining and Industrial Corp. following a Securities and Exchange Commission (SEC) ruling that the firm had illegally issued shares.
In a statement on Tuesday, the bourse said it was “left with no alternative” but to remove Abra Mining from the PSE’s main board pursuant to involuntary delisting rules, and maintain the trading suspension on its shares.
The SEC, in an April 8 decision, imposed a penalty of more than P560 million against Abra Mining for the “unauthorized and fraudulent” trading of unissued and unlisted shares from 2015 to 2019.
The mining firm and its executives and transfer agent were found guilty of violating both Section 26 of Republic Act (RA) 8799, or the Securities Regulation Code (SRC), and Section 61 of RA 11232, or the Revised Corporation Code.
“Section 26 of the SRC makes it unlawful for any person to employ any device or scheme to defraud or to engage in any act or transaction that operates as a fraud or deceit upon any person,” the bourse explained.
“Based on the SEC’s statement, the violations pertain to the illegal issuance of [Abra Mining] shares and the issuance of shares for a consideration less than the stock’s par value.”
The SEC found discrepancies in Abra Mining shares that were filed with the Philippine Depository and Trust Corp. The shares were said to have exceeded the total number of listed shares disclosed in the company’s regulatory filings.
Abra Mining’s registration statement and corresponding certificate of permit to sell were also revoked, while the involved individuals and entities were disqualified from engaging in a registered financial intermediary within a period of five years.
“In view of the SEC’s findings, minority stockholders of [the firm] may, individually or as a group, consult their counsel and seek legal advice on available remedies under existing laws, including RA 11765 or the Financial Products and Services Consumer Protection Act (FPSCPA),” the PSE said.
The bourse also clarified that the SEC has the “authority to adjudicate complaints under FPSCPA, such as damages not exceeding P10 million.”
Trading of Abra Mining shares is currently suspended. Its shares last traded at P0.0046 apiece on March 3, 2021.