Listed MB Technologies has warned investors it is looking at improving its shareholder base and liquidity of its shares as it currently falls short in terms of the new JSE regulations.
The MB Technologies share is currently very tightly held, with 61% of issued shares resting in the hands of directors, according to Profile Media`s latest JSE handbook
The new JSE regulations, altered in October last year, have placed far more onerous requirements on listed companies.
In terms of the new requirements, 20% of the listed shares must be in the hands of the public and there must be at least 500 public shareholders.
There must be at least 50 holders of preference shares and if there are debentures, there must be at least 25 holders.
The company is investigating options to improve the extent and diversity of the shareholder base, and consequently the liquidity of the shares.
A JSE spokesman says MB Technologies is one of many companies that do not meet the new requirements and the market can expect more of these cautionaries.
MB Technologies` e-business subsidiary MB Worksoft is also undergoing a structural shuffle as a new management structure is implemented and the holding structure of the subsidiaries is untangled.
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