FCA agrees to temporary suspension of Finablr’s shares listing

Maria Nikolova

Finablr’s Board has been informed of the presence of $100 million worth of cheques (written by Group companies and dating back to before the IPO), which may have been used as security for financing arrangements for the benefit of third parties.

Finablr PLC (LON:FIN), a provider of cross-border payments, FX and payment technology, today confirms that the Financial Conduct Authority (FCA) has agreed to the temporary suspension of listing of the shares of Finablr PLC at the request of the company.

The update was published just a couple of days after the company announced a number of factors that were placing significant constraints on its access to daily liquidity and its ability to negotiate longer term financing. Since that announcement, these constraints have become amplified, Finablr said today. They are having a material adverse impact on the company’s operations, including resulting in the company no longer being able to provide certain payment processing services.

In addition, the Board has been informed of the presence of cheques (written by Group companies and dating back to before the IPO), which may have been used as security for financing arrangements for the benefit of third parties. A preliminary view is that the amount of these cheques totals approximately US$100 million. The existence of these cheques has only recently been brought to the attention of the Board and urgent investigations are ongoing.

As a result of the foregoing events, the Board is unable accurately to assess the financial position of the company and there is a material uncertainty about the Group’s ability to continue as a going concern.

The Board is looking to put in place a package of urgent measures aimed at restoring confidence and stability across its stakeholders.

Promoth Manghat has decided to step down as Chief Executive Officer, as well as from all other directorships and other offices of entities within the Finablr Group. The Board has accepted his resignation. He has agreed to continue to support the Group while the Board finds a suitable successor.

Furthermore, the Board has decided to establish a committee of its Independent Non-Executive Directors to carry out a comprehensive review of the company’s liquidity and cashflow management functions, its financial and debt position, and its strategic options. The committee will meet on a regular basis and work with the Company’s advisors, including those newly appointed advisors announced below.

Also, the Board has appointed Kroll to carry out a more comprehensive review of related-party transactions and on and off-balance-sheet debt, including the issues identified above regarding the cheques and any other contingent liabilities

Finally, the Board is in the process of discussing with an Independent Financial Advisor its appointment to conduct a review of the company’s debt and cashflow position and to support the Management team in addressing its short- and longer-term financing needs.

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