Picture: 123RF/Allan Swart
Picture: 123RF/Allan Swart

By now shareholders in health-care group Go Life must be groping for the tranquillisers.

Something appears to be badly wrong with the group, which has been unable to dish up the most basic service of providing shareholders with a clear and up-to-date picture of the company’s finances.

Go Life — which has a primary listing on the Stock Exchange of Mauritius (SEM) and a secondary listing on the JSE’s Alternative Exchange (AltX) — last week advised shareholders that it was still not in a position to file its abridged audited annual financial statements by the prescribed reporting deadline.

The company said its auditors had not yet finalised their work and had requested additional time to complete the audit.

There has been no further explanation of the nature of the reporting delay. The development seems bizarre, as Go Life is a relatively small and simple company that should have no problem completing an audit.

Nevertheless, the SEM has again agreed to extend the reporting deadline until the end of January. But this leaves Go Life shareholders in the dark, as they have not had sight of audited financial statements for the year to February 2019 as well as the abridged unaudited financial statements for the three months ended May, six months to August and the nine months ended November 2019.

If Go Life held a primary listing on the JSE, the share would have been suspended before mid-2019. The JSE’s reporting deadline is extended for only four months after the close of a reporting period. The SEM’s rules around reporting are more flexible — and the bourse has already given Go Life multiple extensions for reporting its results.

What will worry Go Life shareholders is that in November the company advised of a comprehensive restructuring of its business — a development that followed subsidiary Go Life Healthcare Ltd being placed in liquidation (as a result of a subordinated shareholder loan from a shareholder dispute unrelated to the company).

Go Life directors intend appealing the liquidation process, arguing that a business rescue intervention would be a more suitable option.

The Go Life board also mandated the CEO to review the possible restructuring or disposal of the Bonhealthcare Property portfolio.

The last set of results seen by Go Life shareholders, the quarter ended November 2018, showed revenue up sharply to $2.4m and profit from operations up 84% to about $900,000.

At that time, the company claimed that it was in the process of incorporating medicinal cannabis into its nutraceutical product range.