Top Information Technology Holdings (Top Tech) has advised its shareholders that its temporary suspension of shares is due to losing its CEO, a possible overstatement of profits and cash flow problems.
This follows yesterday`s suspension of trade in the JSE-listed company, and the resignation of CEO Hans de Nysschen after just a month in office.
Nysschen was appointed in January following the resignations of chairman Justin Adriaanse and CEO Chris Kleingeld. At that time, the company was also trading under a profit warning for its interim results.
Top Tech directors informed shareholders today that an audit is underway and an overstatement of profits may be in the offing.
Added to this is a cash flow problem and the directors say the company`s bank is reluctant to increase its cash facilities.
Top Tech non-executive directors are currently in negotiations with the company`s funders and say they are "actively considering the options and future course of action for the company".
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