Powerspeed consolidates shares

Trading of Powerspeed Electrical’s pre-consolidation shares on the Over the Counter (OTC) will end on September 13, 2024 and new post consolidation certificates will be issued to replace the current certificates, it has been learnt.

Over-the-counter (OTC) is the trading of securities between two counterparties executed outside of formal exchanges and without the supervision of an exchange.

At an annual general meeting (AGM) held on 27 February 2024, shareholders approved the consolidation of the company’s shares.

In a share consolidation notice Powerspeed said the share register shall be closed from 14 September 2024 and re-opened on 16 September 2024.

“All trades from 16 September 2024 shall be based on the post consolidation shares and only new share certificates shall be presented for trading,” reads the notice.

The company said the current certificates will automatically be invalidated and cannot be presented for trading from 16 September 2024.

“The new share certificates will be available for collection from 16 September 2024, at the transfer secretaries.

“After the consolidation, shareholders will have an option to be paid cash for fractional shares or to top up the difference to get a full share,” the company said.

It noted that the top up or fractional shares shall be paid at a price of US$0,15 or equivalent, per pre-consolidation share.

The firm added that the option to top up and get a full share will be closed on 13 September 2024.

“If for whatever reason, no election form is submitted by 1600hrs on 13 September 2024 to the transfer secretaries, the shareholder will be regarded as having opted to be paid cash for the fractional shares,” reads the notice.

Powerspeed Electrical delisted from the Zimbabwe Stock Exchange on 18 December 2020 and with effect from 11 January 2021, its shares began traded over-the-counter.

The company is a leading supplier of electrical, hardware, building and home improvement products and services, trading through its own chain of hardware retail outlets known as Electrosales Hardware.

In the half year period to march 31, 2024 the company’s revenue increased from US$46,8 million to US$58,2 million.

Concurrently, gross profit escalated from US$9,8 million to US$14,2 million and profit after tax also grew, moving from US$1,2 million to US$2,9 million.-ebsiesswekl