SSL Venture Capital shares suspended
SSL Ventures listed in August last year, following the reverse merger of cash-strapped publisher C2W Music Limited.
SSL Venture Capital has received approval to suspend trading of its shares on the Jamaica Stock Exchange (JSE), in response to concerns regarding its financial statements for the year ended December 31, 2018.
The company's auditor Baker Tilly Strachan Lafayette had avoided giving an opinion on the company’s’ audited results due to what it described as insufficient information on its subsidiary companies.
The auditor specifically raised questions about the quantification of goodwill regarding three new acquisitions.
With trading suspended until August 14, SSL Ventures has begun work to resolve the issues raised and address the breach, implement appropriate policies and procedures to ensure that these issues do not recur and submit a modified or restated report that is in compliance with International Financial Reporting Standards and the JSE Junior Market Rules.
It also recently received approval to change its year-end from December to June by the Tax Administration Jamaica, in line with its move to conduct another audit as at June 30, 2019.
SSL Ventures listed last summer following the reverse merger of cash-strapped publisher C2W Music Limited. It subsequently acquired stakes in three start-up ventures, providing business development corporate governance, recruiting and strategic planning.
On Monday, the company released its unaudited statements for the first quarter ending March 2019 – its first full quarter of operations since 2019.
It posted revenues of $93.6 million for the quarter ended March 31, 2019, and a net loss of $35.6 million for the quarter under review, compared to a net loss of $1.4 million in the prior-year quarter.
The comparative results do not reflect SSL Ventures’ three investment holdings as Bar Central Limited, Blue Dot Data Intelligence Limited and Muse 360 Integrated Limited) were acquired in the second half of 2018, SSL Ventures said in its accompanying financial statements.
Consequently, SSL ventures said it would continue to streamline internal processes that can improve efficiencies and reduce administrative and general expenses.
SSL Ventures holds equity positions in three unlisted marketing companies – Bar Central, 75 per cent acquired for $5.9 million; Blue Dot Media Intelligence, 50 per cent for $53.7 million; and Muse 360 Integrated Limited, 51 per cent for $26.4 million.
It also recently signed off on term sheets to provide funding for two companies in renewables company, Radiant Energy (“Radiant”) and healthcare service provider, Alpha Imaging.