G3 Technologies issues third rejoinder on its placement in Defaulter’s segment

November 19, 2021 (MLN): Following the notice issued by Pakistan Stock Exchange, G3 Technologies Limited, previously Service Fabrics Limited (SERF) has issued a third rejoinder today as per which the company has taken further steps for the removal of its name from the default segment.

In this respect, the company obtained a certificate from external auditor M/S CROWE Hussain Chaudhury & Co which confirmed the company’s letter of credit amounting to $3,140 million to import plant and machinery related to the calcium carbide project.

In addition, the company has made investments amounting to Rs400m in the equity share of Ghani Chemical Industries limited.

After getting it approved by the Security Exchange Commission of Pakistan (SECP), the name of the company has been changed from Service Fabrics Limited to G3 Technologies Limited on November 17, 2021.

Meanwhile, the company has changed its principal line of business and obtained certified true copies of the revised memorandum and articles of association from the Securities and Exchange Commission of Pakistan.

To recall, Pakistan Stock Exchange (PSX) on Tuesday placed the company in defaulter’s segment on account of a default of Clause 5.11.1. (b) of PSX Regulations which states that:

“A listed company may be placed in the defaulters’ Segment if it has suspended commercial production/ business operation in its principal line of business for a continuous period on one year”.

The next day company issued a rejoinder against PSX notification, wherein the company considered the placement of its shares in the defaulter's segment as unilateral and due to narrow, one-sided, rigid, and unaccled-for interpretation of PSX's regulations.

In its second rejoinder, SERF informed that it has resumed its commercial activities, which was the major reason for placing the company in the default Segment.

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