Reason for observation status applied to AS “VEF Radiotehnika RRR” changed


Nasdaq Riga decided on November 12, 2014 to change the reason due to which the observation status is applied to AS “VEF Radiotehnika RRR” (RRR1R, ISIN code: LV0000100972).

The reason due to which the observation status was applied as of July 22, 2014 in accordance with Nasdaq Riga Listing and Disclosure rules Article 20.1.2, Subarticle 9 has ceased to exist.

The observation status on July 22, 2014 was applied due to the following reason, on July 22, 2014 AS “VEF Radiotehnika RRR” submitted its annual financial report of 2013 with the independent auditor’s report. The independent auditor’s report described several issues resulting in auditor’s refusal to issue the opinion on the financial report. The auditor expressed 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.

Yet, taking into account that AS “VEF Radiotehnika RRR” shareholders meeting decided to approve company’s annual financial report of 2013 together with the independent auditor’s report, it is no longer necessary to attract the attention of financial market participants towards the fact that the auditor has not expressed his opinion on company’s annual financial report of 2013. Therefore this reason of the observation status has ceased to exist.

Simultaneously Nasdaq Riga informs that observation status as of November 12, 2014 is applied only in accordance with Nasdaq Riga Listing and Disclosure rules Article 20.1.2, Subarticle 5, which states that the observation status shall be applied to an issuer in circumstances when the Issuer has permanent insolvency problems. On September 19, 2014 AS „VEF Radiotehnika RRR" informed that on September 18, 2014 an application was submitted to the Riga City Kurzeme District Court to begin the legal protection procedure.

The purpose of applying observation status is to alert the market participants.

 

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