NASDAQ OMX Riga decided on July 22, 2014 to immediately apply an additional reason for applied observation status to AS “VEF Radiotehnika RRR” (RRR1R, ISIN code: LV0000100972) due to the following reason.
On July 19, 2014 AS “VEF Radiotehnika RRR” submitted its annual financial report of 2013 with the independent auditor’s report in Latvian. Independent auditor’s report describes several issues resulting in auditor’s refusal to issue the opinion on the financial report. The auditor expresses concerns about the issuer’s ability to continue its operations as its short term liabilities significantly exceeds its short term assets. Therefore the auditor was not able to obtain sufficient and appropriate evidence for audit which would allow to issue the opinion on the financial statement, thus the opinion of the auditor on AS “VEF Radiotehnika RRR” annual report of 2013 was not expressed.
Therefore the observation status to AS “VEF Radiotehnika RRR” will be applied also in accordance with NASDAQ OMX Riga Listing and Disclosure rules Article 20.1.2, Subarticle 9, which states that the observation status shall be applied to an issuer in circumstances influencing the issuer’s activity have occurred which may materially threaten the interests of the investors, and in cases when it is important to turn the attention of market participants to a substantial circumstance related to the relevant financial instrument or its issuer.
The observation status was initially applied to AS “VEF Radiotehnika RRR” as of May 6, 2014, due to the company’s failure to submit its audited annual report of 2013 on time. On July 19, 2014 the company submitted its audited annual report of 2013 in Latvian, the report in English is still not submitted, therefore the observation status assigned to the company on May 6, 2014 still is in force.
The purpose of applying observation status is to alert the market participants.
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