Finablr announces Board changes, Ernst & Young resigns as auditor of the company

Maria Nikolova

Abdulrahman Basaddiq and Bassam Hage have resigned as directors of Finablr.

Provider of cross-border payments, FX and payment technology Finablr PLC (LON:FIN) today announces changes to its Board. Abdulrahman Basaddiq and Bassam Hage resigned as directors of the company effective March 27, 2020.

Mr Basaddiq had been appointed as a Non-Executive Director in April 2019 under the terms of the Relationship Agreement between Finablr and certain of its major shareholders, including Dr. B.R. Shetty, which permitted such shareholders to appoint a number of nominees to the Board. Mr Basaddiq was a Non-Executive Director but not considered by the Board to be independent as a result of his being appointed at the request of the Shetty family shareholders.

Mr Hage had served as an independent non-executive Director since his appointment in August 2019. His resignation on Friday followed a previous request from Ernst & Young LLP (“EY”) with respect to governance changes at the Board, including that Mr Hage step down from the Board as a result of possible perceptions that his position on the Audit Committee and the Board may, in the light of his previous career within the Ernst & Young group, prejudice EY’s ability to meet applicable independence criteria as auditors of Finablr.

Also today, Finablr announced EY’s resignation as its auditor. In their letter of resignation, EY cited “concerns arising out of recent events at the Company and NMC Health plc…the composition of the Board of the Company, the adequacy of corporate governance concerns and the recent issues that have caused the Company to commission an independent review of the Company’s financial arrangements, including of related party transactions and on and off- balance-sheet debt”.

On March 17, 2020, Finablr announced potential insolvency appointment. Prior to that, the company confirmed that the Financial Conduct Authority (FCA) agreed to the temporary suspension of listing of the shares of Finablr PLC at the request of the company.

That 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 on Monday. 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.

Read this next

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”

blockdag

Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”

Digital Assets

Hidden Road adds OKX’s Nitro Spreads into prime brokerage

“Hidden Road continually seeks to increase market access and capital efficiency through expanded prime brokerage offerings. Integrating OKX’s Nitro Spreads product builds upon this philosophy by extending our counterparties’ ability to execute risk-managed arbitrage strategies.”

blockdag

Dev Release 31: BlockDAG’s SHA-3 Upgrades Propel Crypto Mining Innovation as Miner Sales Approach 5800 Units

Learn about BlockDAG’s 31st Development Release, which includes advanced SHA-3 updates and a significant increase in miner sales, driving advancements.

blockdag

BlockDAG Dominates 2024 Crypto Trends: Surpasses $28M in Presales Amid Strategic Partnerships

Explore BlockDAG, Shiba Inu, and Kaspa Killer’s rise in 2024’s crypto market, focusing on BlockDAG’s $28M presales, strategic partnerships, and innovative technology.

blockdag

BlockDAG’s $30 by 2030 Valuation Prediction and Roadmap Reveal Gains Traction From Filecoin and XLM Investors

Discover why BDAG’s $30 price prediction by 2030 outshines Filecoin Investors’ hopes and XLM’s recent surge with a booming presale and clear roadmap.

<