NGX Grants Multi-Trex 24-Month Moratorium To Meet N20bn Capitalisation

Multi-Trex Integrated Foods Plc has secured a 24-month extension from the Nigerian Exchange Limited (NGX) to regularise its free float position, following a recapitalisation exercise that altered the company’s shareholding structure.

In a regulatory notice to shareholders, seen By THE WHISTLER, the company said the NGX Regulation Company (NGX RegCo) had conditionally approved a moratorium lasting until January 14, 2028, within which Multi-Trex is expected to meet the minimum free float requirements for companies listed on the NGX Main Board.

Under NGX rules, listed companies are required to maintain a minimum free float of 20 per cent of issued share capital or a market capitalisation of at least N20bn.

Multi-Trex disclosed that its current free float stood at 7.23 per cent, valued at approximately N117.46m, based on its 2024 audited financial statements.

The company attributed the shortfall to its recent business recovery and recapitalisation efforts. According to the disclosure, Multi-Trex resumed recovery activities in 2022 after a seven-year cessation of operations.

As part of a capital restoration strategy, N-Foods Universal Concept Limited injected funds to settle the company’s obligations to the Asset Management Corporation of Nigeria (AMCON).

This intervention resulted in N-Foods Universal Concept Limited acquiring 70 per cent of the company’s issued share capital, significantly reducing the proportion of shares held by the investing public and, consequently, the free float.

While the recapitalisation stabilised the company’s operations and balance sheet, it brought Multi-Trex below the NGX’s free float threshold, prompting an application for regulatory forbearance.

The NGX RegCo, in granting the extension, directed the company to formally notify shareholders of the regulatory implications of non-compliance. Multi-Trex warned that failure to meet the free float requirement by the end of the extension period could lead to trading suspension or the commencement of delisting procedures, at the discretion of the Exchange.

The Board of Directors said it remains committed to retaining the company’s listing status and is currently evaluating strategic options to increase the public shareholding within the approved timeframe.

Multi-Trex assured investors that it would continue to engage with regulators and provide periodic updates to the market as it works towards restoring compliance with NGX listing rules.