Investor Relations
Share Trading Procedure
How Abagold facilitates trade in its shares in a manner consistent with the Financial Markets Act.
Background
From OTC Platform to Alternative Procedure
Since Abagold's conversion to a public company in 2008, trade in its shares was facilitated through an over-the-counter (OTC) trading platform developed and hosted by a third-party service provider, FNB Securities.
Following the introduction of the Financial Markets Act, No. 19 of 2012, the Financial Services Board (FSB) took the view that such OTC share trading mechanisms fall within the definition of an “exchange” and must be licensed as such under the Act. FNB Securities indicated that it would not seek an exchange licence, and as a result the Abagold board suspended trading in Abagold shares on the FNB Securities OTC platform with effect from 19 September 2014.
Abagold itself has not applied for an exchange licence, given the costs involved and the onerous administrative burden it would place on the company. The Board nevertheless wishes to continue facilitating trade in Abagold shares in a manner that does not contravene the Financial Markets Act, and has accordingly introduced an alternative procedure through which Abagold endeavours to put prospective purchasers and sellers in contact with one another, for them to reach agreement on the sale and purchase — including the price — of any Abagold shares.
The Alternative Procedure
How to Trade Abagold Shares
Three steps connect prospective sellers and buyers and settle the transfer of shares.
01
Register Your Interest
Prospective sellers or buyers of Abagold shares may email the company secretary at phindile@abagold.co.za, setting out their full names and the contact details at which prospective counterparties can reach them.
02
Negotiate Directly
It is then up to the prospective purchaser and seller to negotiate the transaction between themselves, including the purchase price payable.
03
Settle the Transfer
Once a sale of Abagold shares has been agreed, the parties should contact the company secretary at phindile@abagold.co.za, who will assist in effecting payment and the transfer of the relevant shares with Abagold's transfer secretaries, Link Market Services.
By sending this email to the company secretary of Abagold, each shareholder agrees that their name and contact details may be sent to any prospective counterparty.
For questions relating to this interim procedure, please contact Enver Manchest on +27 28 313 0253.
More Investor Information
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Investor Relations