NGX approves Notore Chemical Industries Plc’s free float compliance extension for 2years 

NGX approves Notore Chemical Industries Plc’s free float compliance extension for 2years 

NGX approves Notore Chemical Industries Plc’s free float compliance extension for 2years 

The Nigerian Exchange Limited (NGX) has approved Notore Chemical Industries Plc’s free float compliance extension request for two years (2023- 2025). 

This was contained in the company’s notification of the approval for free float compliance extension obtained by Nairmetrics. 

The Board of Directors of the company in a statement signed by Mr. Ohis Ohiwerei Group Managing Director noted that this is to enable the Company to comply with the NGX’s free float requirement for companies listed on its Main Board and to ensure that the Company returns to its post-listing obligations. 

Rules Governing Free Float: According to the Board, this is in line with Rule 3.1.4 of The Exchange’s Rules Governing Free Float Requirements, which states that: 

  • “The Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe” 

The statement noted that the Company’s Board and Management steadfastly uphold good corporate governance principles, demonstrating a resolute commitment to rectifying the free float deficiency within the prescribed timeline set forth by NGX Regulation Limited (NGX RegCo), failing which NGX RegCo may suspend trading in its securities. 

  • “We are diligently working towards ensuring compliance to maintain the integrity of our trading environment,” the statement noted.  

Financial performance: Notore Chemical Industries recorded an N66.24 billion loss before tax in Q3 2023 from N949.6 million reported in Q3 2022. 

Key factors that contributed to Notore Chemical Industries’ recent bad performance include: a 61.4% drop in revenue from contracts with customers to N12.7 billion in Q3 2023 from N32.95 billion in Q3 2022, while net finance cost increased to N51.53 billion in Q3 2023, an increase of 296.2% from N13.01billion reported in Q3 2022.  

Ohis Ohiwerei, the Group Managing Director, of Notore Plc, in a statement, acknowledged the company’s resilience, noting “While we successfully addressed the gas supply limitation, the impact of earlier challenges lingers in our financial performance.  

He said that Notore is diligently working to recover the lost revenues from previous quarters.  

  • “Our dedicated teams are implementing strategic measures to optimize production, reduce costs, and explore avenues for revenue generation. These efforts and our renewed gas supply provide a solid foundation to navigate the remaining challenges and move towards financial stability.
  • Ohiwerei further emphasised, “In the latter part of the third quarter of 2023, we resolved the gas supply limitation and gradually resumed production. I am confident in the Company’s steadfast commitment to finding innovative solutions even in the most challenging circumstances, paving the way for growth initiatives in 2024.”  

 


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