JSE suspends Imbalie Beauty
Imbalie Beauty’s shares were suspended by the JSE on Tuesday morning.
Imbalie was forced to issue a statement on August 1 saying there was a disclaimer from its auditor, Nexia SAB&T.
"Suspended due to the auditor’s report on the issuers year-end results [that] contains a disclaimer of opinion," was all the JSE said in Tuesday’s announcement.
Nexia SAB&T said it disclaimed its opinion over the uncertainty whether the cosmetic group’s deferred tax asset of R22m could be recovered from its future taxable profits.
Imbalie’s results for the year to end-February were released only on June 29 following a threat by the JSE to suspend the share for failing to meet its three months’ financial reporting deadline.
In Imbalie’s financial results, Nexia SAB&T emphasised that the group’s total current liabilities exceeded its current assets by R5.5m, implying it was not a going concern.
Imbalie announced a proposal in June whereby it would convert itself into a cash shell to be used for a reverse listing by Wepex Geotechnical.
"At the date of this report, management’s plans on both the short term funding requirement and the future direction of the group were not sufficiently advanced to allow us to draw a review conclusion on Imbalie Beauty’s ability to continue as a going concern," Nexia SAB&T said in the results statement.