Net 1 vows to regain Nasdaq compliance as it assesses court ruling

Net 1 [JSE:NT1], the company behind Cash Paymaster Services that used to run SA’s social grant payment system, says it has a received a delinquency notification letter from the Nasdaq stock exchange due to a delay in submitting an annual financial report.

The group, which is dual listed on the JSE and the US exchange, said in an update to shareholders on Thursday that the notice has “no immediate effect on the listing or trading of the company’s common stock”.

This comes after the Supreme Court of Appeal on Monday ruled against an application by Cash Paymaster Services for leave to appeal an earlier judgement that ordered it to refund the South African Social Security Agency R317m.

READ: Net1 bleeding after loss of welfare grant contract

Net 1 previously said the adverse ruling was expected to temporarily delay the filing of the company’s Form 10-K as it needs to assess the impact, if any, of the ruling on its financial statements. A Form 10-K is an annual report required by the Securities and Exchange Commission in the US.

On Thursday Net 1 said it had been informed by the Nasdaq that its has to submit a plan of compliance within 60 calendar days.

It said it intends to submit its 10-K submission within this 60-day period and “regain compliance with the Nasdaq continued listing requirements”.

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