The decision from Friday not to admit shares of OA Coffee AS to trading on the First North market was made because the Listing and Surveillance Committee of Nasdaq Tallinn did not have sufficient confidence that the reporting and transparency requirements would be met, the chairman of the committee, Sven Papp, said on Monday.
"In the committee's view, if the shares of OA Coffee AS were admitted to trading, the above factors in their cumulative effect could damage the interests of investors as well as the reputation of First North and the stock exchange," Papp told BNS.
According to the rules and regulations of the stock exchange, the Listing and Surveillance Committee has the right to refuse to admit an issuer's financial instruments to trading if, in the opinion of the committee, the financial position, market position, economic activity, management, reputation, future plans or other important circumstances significantly damage the interests of investors or the reputation of First North or the stock exchange.
The committee's decision was based on an analysis of the materials provided by OA Coffee and its reporting practices to date.
At the end of November, OA Coffee AS announced an initial public offering (IPO) of shares, in which it wished to raise from €495,000 to €544,500 by issuing up to 165,000 shares, which were then to be listed on the First North alternative market.
The proceeds of the offering were planned to be used for the development and marketing of new functional coffees and experiential coffees, scaling the activities for the sales and marketing of OA Coffee products, promoting and optimizing production, establishing a training class and showroom in the coffee roastery and opening an additional OA Coffee cafe.
OA Coffee AS is a company established and incorporated in Estonia whose main business activity is coffee roasting and retail and wholesale of coffee beans.
Editor: Marcus Turovski