I-Fusion says the settlement that CEO Ron Sackstein made with the Financial Services Board (FSB) over insider trading allegations is in no way an admission of guilt and the company is eager to get on with business as usual.
Sackstein made a settlement of R1.1 million with the FSB shortly before Christmas last year after he had come under investigation by the board for suspected insider trading with respect to a tranche of shares he traded in April 1999.
Jan Hnizdo, financial manager of I-Fusion, explains that Sackstein purchased a tranche of I-Fusion shares in his personal capacity between 13 and 22 April. At that time, the shares were trading between 390c and 435c.
Then trading as Impotek Holdings, I-Fusion announced its year-end results to February on 21 April, showing a 216% rise in turnover and an increase of headline earnings attributable to shareholders of 130% to R13.6 million from R5.9 million.
I-Fusion is adamant that the settlement made is not an admission of guilt or liability and that Sackstein is still in possession of the shares under dispute.
However, market analysts have questioned why Sackstein paid the settlement if he was not guilty and why the FSB did not more actively pursue prosecution.
I-Fusion directors believe the FSB`s actions were against Sackstein in his personal capacity, and it had no impact on the financial well-being of the company.
"We wish to reassure shareholders that I-Fusion is financially sound and continues to trade profitably," says the I-Fusion board, adding that the company "remains committed to ensuring that any trading in I-Fusion equity is in accordance with the Johannesburg Stock Exchange and any other statutory regulations".
The I-Fusion board has convened a meeting to be held on Monday next week, after which a press statement will be released.
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