Finablr suspends trading of shares

Finablr has temporarily suspended its share listing amid “material uncertainty” about the company’s ability to continue as a going concern.

The global platform for payments and foreign exchange confirmed in a statement that the Financial Conduct Authority agreed to the suspension, following an update on 12 March that “a number of factors that were placing significant constraints on the company's access to the daily liquidity”.

Since that announcement, those constraints have “become amplified and have now reached a point where they are having a material adverse impact on the company's operations”, resulting in the it no longer being able to provide certain payment processing services.

The board has also been informed of the presence of cheques - written by group companies and dating back to before the IPO - which may have been used as security for financing arrangements for the benefit of third parties. A preliminary view is that the amount of these cheques totals approximately $100 million.

“As a result of the foregoing events, the board is unable accurately to assess the financial position of the company and there is a material uncertainty about the Group's ability to continue as a going concern,” read the statement.

Promoth Manghat has informed the board that he has decided to step down as chief executive, as well as from all other directorships and other offices of entities within the group. He has agreed to continue to support the company while the board finds a suitable successor.

The board has decided to establish a committee of its independent non-executive directors to carry out a comprehensive review of the company's liquidity and cashflow management functions, its financial and debt position, and its strategic options.

It has also appointed Kroll to carry out a more comprehensive review of related-party transactions and on and off-balance-sheet debt, including the issues identified above regarding the cheques and any other contingent liabilities

The board is in the process of appointing an independent financial advisor to conduct a review of the company's debt and cashflow position and to support the management team in addressing its short and longer-term financing needs.

The group’s more prominent Travelex business was hit by a ransomware attack which took the foreign exchange service offline for several weeks in January.

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