FTN Cocoa Processors Plc released a report on the 8th of March 2019, informing the Nigerian Stock Exchange (NSE) shareholders and other stakeholders of the reasons behind the temporal lapse in the conduction of their Annual General Meeting (AGM), for the past two years.
Reasons behind the delay
According to the report, the company did not hold the AGMs or declare dividends because of the adverse condition of the company, as a result of the non-availability of the required working capital to procure cocoa beans.
Transmar Commodity USA (one of the firm’s foreign partners) had financial problems and went bankrupt.
A 5 year struggle: The company had been having financial set backs since 2014 when it last released third-quarter earnings.
Efforts have been made – The company stated that several efforts have been made to secure working capital both locally and internationally, and it hasn’t given the expected outcome. Although the company has assured its stakeholders that they would soon overcome the financial issues.
A dire situation – Staff salaries, statutory payments, secretary and auditors’ fees with other financial responsibilities including listing fee are all yet to be paid.
Also the company’s head office has been taken over by the bank because of its debt to the bank.
Staffs reaction to unpaid salaries – As a result of the outstanding salaries, almost all the company’s staff have resigned their employment.
About FTN Cocoa Processors
FTN Cocoa Processors Plc was formerly registered as Fantastic Traders Nigeria Limited, a Limited Liability Company Which was incorporated in 1991.
The company commenced cocoa processing business with a third-party arrangement (Toll Processing) with Stanmark cocoa processing company limited in 1995 for conversion of cocoa beans into cocoa butter and cocoa cake/powder.
The company later extended its third-party processing activities to Ile-Oluji, Cocoa Cooperative, Cocoa Akure and Cocoa products, Ede Osun State.
FTN Cocoa last traded yesterday at N0.20 per share.