The Securities and Exchange Commission‘s order suspending Oando Plc‘s scheduled AGM, resulted in a slippery slope for the company’s share price.
The oil and gas company’s stock price fell again four days after rebounding from its week-long decline.
The SEC had issued an order suspending Oando‘s annual general meeting (AGM) yesterday. The announcement negatively impacted Oando‘s share price which declined by 3.75%.
Specifically, Oando share price declined by 3.75% on Monday, closing at N3.85 kobo per share price.
Why this matters: The company’s share price has been unstable since SEC concluded its investigation into the activities of Oando‘s management. The actions of both parties continue to affect investors confidence, as uncertainty clouds the future of the company.
What you need to know: Though the company’s AGM had been suspended until further notice by SEC, Oando insisted on having the AGM. As part of the company’s defiance to the suspension, it declared that a new date will be fixed as the action taken by SEC is not in the best interests of the Company and its Shareholders.
“It is the Company’s position that the action taken by SEC in directing a cancellation of the AGM is not in the best interests of the Company and its Shareholders who have traveled at great expense, from far and wide, to attend the annual meeting of their Company.
“The Company also stands to lose significant shareholder funds by the attendant cancellation of the AGM at such short notice.”
Note: With Oando‘s intention to go ahead with the AGM, investors confidence might rise again leading to the company’s share price to rebound. The company’s share price usually respond positively every time Oando respond to any SEC order.
Note: With additional reporting by Olalekan Fakoyejo.
