This comes after the Securities and Exchange Commission completed a three-year probe that revealed the company’s owners and related parties violated the law by issuing P1.7 billion worth of illicit shares before trading was suspended in 2021.
“[T]he PSE is left with no alternative except to maintain the trading suspension on AR shares and proceed with the initiation of delisting proceedings pursuant to its involuntary delisting rules,” the bourse said in a statement on Tuesday.
On Monday, the SEC announced fines of over P560 million against company president James Beloy, company directors, its transfer agent Asian Transfer & Registry Corp. and several stockholders.
They will also be banned from serving as registered persons or in any capacity as employees, officers, or directors of a registered financial intermediary supervised by the SEC for five years.
The PSE’s decision leaves Abra’s minority shareholders in a precarious position, as they face the reality of being indefinitely stuck in the company after it is ejected from the exchange.
The PSE said affected shareholders are encouraged to seek legal advice for possible remedies under laws like the Financial Products and Services Consumer Protection Act. This offers a pathway to claim damages of up to P10 million.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
