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Johannesburg - Local technology company Gijima [JSE:GIJ] faces having its listing on the Johannesburg Stock Exchange (JSE) suspended after it failed to submit an interim report.
The JSE published its warning on Thursday, referencing Gijima which trades under the code GIJ.
“The Johannesburg Stock Exchange (JSE) wishes to advise that the above mentioned company has failed to submit its interim report within the three-month period stipulated in the JSE's listings requirements,” read the notice.
“Accordingly, the company’s listing on the JSE trading system has been annotated with an ‘RE’ to indicate that the company has failed to submit its interim report timeously and that the listing of the company’s securities is under threat of suspension and possible termination.
“Should the company still fail to submit its interim report by 30 April 2014 its listing will be suspended,” read the JSE announcement.
At the time of writing, Gijima had not yet responded to Fin24’s request for comment.
The JSE warning for Gijima comes after the technology company earlier this year outlined plans to delist from the stock exchange.
The intention to delist came after Gijima chairperson Robert Gumede made an offer in February to buy out Gijima’s remaining minority shareholders for R2.20 per share in cash. Gumede planned to buy the shares through his company Yebo Guma Investments.
Guma’s entities previously increased their ownership of Gijima’s shares from 46.7% to 88.4%.
Gijima’s share price tumbled from a high of R340 in February 2011 to an opening low of R1.22 on February 4 this year.
Poor financial performance is a key reason for Gijima’s diminishing share price. In April 2013, the company reported a loss of R23.73m for the first half of that financial year. And for the year ended June 30 2014, Gijima posted a full-year loss of R152.4m.
The company has also previously been dragged down by a legal battle with the State Information Technology Agency over a multi-million rand Department of Defence contract. In 2011, the Department of Home Affairs also settled out of court with Gijima for the loss of R389m regarding a contract for an integrated electronic database.
