Cal Bank Plc has announced the temporary suspension of the remaining procedures for the completion of its GH₵600 million rights issue.
This decision follows a court injunction filed by a minority shareholder.
The Bank has written to the Ghana Stock Exchange, alerting its shareholders to the notice of the injunction order.
“…reminded its shareholders of the notice of an order of injunction filed by a minority shareholder (“Injunction Application”) regarding CalBank’s GH¢600 million rights issue (“Capital Raise”). Considering the above, CalBank has temporarily suspended the remaining processes for completion of the Capital Raise, notably the allotment of shares”, the statement from the Bank to GSE read in parts.
Hearing of the injunction application is expected to commence in mid-May after which the court will render a decision on whether to grant or deny the application.
The Bank says it will update shareholders about the outcome of the hearing.
“CalBank understands the constraint to shareholders brought on by this Injunction Application and continues to actively engage the Securities and Exchange Commission and all its other regulators to resolve the matter as soon as practicable”, the statement further added.
Cal Bank was raising GH₵600 million to reinforce its financial position, support its growth strategies and generate long-term value for its shareholders.
