Trustco’s urgent application against suspension successful in SA High Court
Trustco received a lifeline from the High Court of South Africa earlier this week when the court allowed its urgent application to prevent the Johannesburg Securities Exchange to suspend Trustco’s listing due to alleged accounting irregularities.
Trustco’s brief victory resulted in a blip in the share price which is otherwise under heavy pressure from investors. On Friday 05 August, the Trustco share price was still only 45 cent but on Monday 08 August, the day of the High Court verdict, it closed on 61 cent and managed to maintain this level to Thursday morning. However, an unknown investor was still short-selling the stock, as has been the case for the past two years, with a buy offer of 44 cent. This created an unusually wide spread on the stock, which may impede any further gains from the court victory.
On 03 January 2020, Trustco traded at R16.00 but from there the stock assumed a downhill trend that lasted more than two and a half years.
Trustco was elated over buying itself a little more time in its battle to stop the JSE from suspending its listing, citing in a statement the reasons for the High Court’s judgement.
Reminding Trustco’s counsel that this was just an urgent application to prevent suspension, the judge stated “The grounds of review are all deserving of a proper hearing in due cause and I am satisfied that Trustco has asserted a prima facie right to fair and just administrative action.”
In a statement issued after the judgement, Trustco indicated that it will take civil action against those parties it deems responsible for its dispute with the JSE, and the subsequent destruction of shareholder value through the decline in its share price.
The JSE was ordered to pay the costs of the urgent Court application, including the costs of two counsels.