The South Pacific Stock Exchange (SPX) has approved a request by Kinetic Growth Fund Limited (KGF) for voluntary suspension in trading.

The voluntary suspension request is related to the company’s delay in producing the audited financial statements to the market in a timely manner, attributed to delays in completion of the audit of its subsidiary company – Oceanic Communications Pte Ltd – consequent to recent COVID-19 restrictions.

SPX chief executive officer Krishika Narayan said that had in turn impacted the KGF group audit.

She said as per SPX requirements, the audited financial statements were to be released by March 31, 2020, however, considering the COVID-19 SPX regulatory relief provided to all listed entities, KGF was granted with a further two months extension until May 31, 2020.

“However, KGF has been unsuccessful in meeting this extended deadline and considering the best interest of the market and to ensure investment decisions are based on up-to-date information, the entity has applied for a voluntary suspension in trading of its shares,” Ms Narayan said.

“According to Section 73.2 of the SPX Listing Rules, the SPX may grant an entity a Voluntary Suspension for a period it believes is appropriate in the circumstances and made subject to compliance with conditions that the SPX thinks proper.

“A listed entity may seek a voluntary suspension in trading of its shares where the entity feels that suspension in trading is required to protect the interest of its shareholders and to maintain an orderly market.”

Ms Narayan said the SPX as the front-line regulator of the stock market would closely monitor KGF’s audit process to ensure the audited financial accounts were disseminated to the market, particularly to the shareholders, at the earliest possible.

The trading suspension in KGF shares is effective immediately and until such time the company has requested for the trading suspension to be lifted or when the company’s audited financial statements are released to the market.