Oct 25, 2019 (LBO) – The Finance Company (TFC) is currently working with a company that has expressed its interest to invest at TFC as a shareholder through a private placement, the company today said in a stock exchange filing.
“The investor is pursuing his actions to provide the proof of funds and also TFC is working with the investor to make his investment a reality,” the company said.
“We will inform of further communications on the above matters at the appropriate time.”
The issue of shares, however, is subject to the Central Bank and the CSE approving in principle the issue and listing of shares and obtaining existing shareholders’ approval by way of a special resolution at a General Meeting.
The Central Bank decided to issue a notice of cancellation of the license issued to The Finance Company having considered the following:
(1) The continuous violation of the FBA Directions, including Minimum Core Capital, Capital Adequacy and Liquid Assets requirements.
(2) The critical financial condition of the TFC due to negative capital, poor liquidity position, continuous losses, significantly deteriorated asset quality, poor governance practices, etc., which would be detrimental to the interest of its depositors and other creditors and:
(3) Inability to identify a credible investor who could provide reliable proof of funds to infuse capital in to the company.
However, the Company may tender its objections, if any, in writing to the Monetary Board against this notice of cancellation within 30 days.