1st Nov 2022 14:42
(Alliance News) - Umuthi Healthcare Solutions PLC on Tuesday said it was working to have its delisting by the Financial Conduct Authority overturned, after it was suspended and then banned from trading in July over claims that millions of non-existent shares had been sold prior to the company's flotation.
Umuthi is a London-based healthcare firm, which was approved for admission to the London Stock Exchange in March 2021 after developing a smartphone app designed to give doctors working in rural South Africa better access to medicines.
However, trading was suspended in June 2021 after the UK Financial Conduct Authority expressed concerns that some Umuthi shareholders involved in a share exchange agreement prior to trading were unable to trade their shares following the flotation.
On July 4, 2022, the FCA issued a First Supervisory Notice unilaterally cancelling the listing of the company. On August 5, Umuthi referred the FCA's decision to the Upper Tribunal & Tax Chancellery, for an independent re-assessment of the decision.
However, it was not until last week on Friday that the contents of the first notice were published.
Now having access to the details of the notice, Umuthi argued on Tuesday that its contents are incorrect in many respects, and that the FCA has drawn misleading conclusions from the facts submitted.
In a separate notice, Umuthi also distanced itself from shareholder Anthony Morris, appointed by other disgruntled shareholders, otherwise referred to as the "Umuthi Action Group", to represent their interests.
Morris is currently wanted by the South African Police Services on extortion charges. Umuthi said that his shareholding is invalid, and the legal steps to forfeiture are currently taking place. Warrants for his arrest have been issued by authorities in South Africa, Canada and the US.
Looking ahead, Umuthi said it was confident that a reassessment of the case would confirm that the FCA made a mistake in deciding to delist its shares.
The company is currently preparing for the next round at the tribunal, with a view to having the delisting overturned.
By Holly Beveridge; [email protected]
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