CAPE TOWN - Sagarmatha Technologies announced yesterday that it would not be listing on the JSE tomorrow.
In a statement yesterday the company said: “On April 10, the company received a notification from the JSE withdrawing the listing approval. The reason cited by the JSE was non-compliance with Section 33 of the Company’s Act, which requires the submission of financial statements to the Companies and Intellectual Property Commission (CIPC).
“On April 11 the company received written confirmation from CIPC indicating that Sagarmatha Technologies was compliant and had provided the required financial statements.
“The JSE now cites a technical point, which has prevented Sagarmatha Technologies from listing on April 13. The technicality suggests that Sagarmatha Technologies was non-compliant on the date that the pre-listing statement was approved. The CIPC has confirmed otherwise, stating that at no stage, was Sagarmatha Technologies not compliant.”
Sagarmatha confirmed that it received indicative commitments for this listing exceeding R4billion, therefore, comfortably meeting the minimum listing requirements of the JSE.
“However, due to the JSE withdrawal of the listing notice, Sagarmatha Technologies is legally bound not to accept these applications from its committed investors. Sagarmatha Technologies was hopeful it could resolve this issue with the regulator and requested the extension of a new listing date. However, the JSE has requested the company make provision for a fresh listing application,” the company said.
This listing has been the most scrutinised, beginning with an unprecedented interest in how multi-sided-platform (MSP) technology companies are valued.
Sagarmatha Technologies is still of the opinion that it is important for Africa to have its own MSP, so that Africans are able to take control of their own technology and data and eCommerce destiny.
It was the intention of the company to benefit more than 3million workers, which would have come through the shareholding in Sagarmatha that included: trade unions, civil society organisations, black entrepreneurs, black businesses, employees and academic institutions. This would have made Sagarmatha the most representative and largest black-owned listing on the JSE.
Additionally, more than 5000 young IT professionals would have had the opportunity to be trained in the area of data science, Artificial Intelligence, System Engineering and other MSP technologies.
Sagarmatha extended its “sincere thanks and gratitude to all its stakeholders for their support - shareholders, management, the board of directors, employees, legal advisers, TGR Attorneys, sponsor and transaction adviser, Vunani Capital, accounting firm BDO, asset managers and financial services group, as well as the JSE”.