Powerspeed Electrical – Guide to Over The Counter Trading
Definitions
| Company Website | means www.powerspeed.co.zw |
| OTC Trading | means over-the-counter trading: trading of shares outside of a recognised stock exchange |
| Settlement Agent | means First Transfer Secretaries Pvt Limited, the party responsible for the financial settlement of transactions between buyers and sellers |
| Sponsoring Broker | means Imara Securities Limited, the authorised broker for buyers and sellers of the Company’s shares |
| Transfer Agent | means First Transfer Secretaries Pvt Limited, the party responsible for the Company share register recording the transactions between buyers and sellers |
Background
Powerspeed Electrical Limited (the Company) delisted from the Zimbabwe Stock Exchange on 18 December 2020.
To enable shareholders to trade Powerspeed shares on an informed basis and receive a fair price an over-the-counter (OTC) share trading governance and communications framework was implemented with effect from 11 January 2021.
This framework comprises systems to match buyers and sellers and enable fair trading in the Company’s shares, and the implementation of share transfer systems, financial reporting, the appointment of brokers and the appointment of supporting consultants.
Sponsoring Broker
The Company has appointed Imara Securities to receive buying and selling instructions from investors. Please contact the following:
Name: Mr Kuda Mundowozi
Address: Block 2, First Floor Tendeseka Office Park, Samora Machel Avenue East, Harare, Zimbabwe
Phone: +263 242 798098/790590/
eMail: [email protected]
Website: https://www.imaracapital.com/imara-edwards-securities/
Share Price and Trading Data
The Company Website is the primary channel of communication of daily share trading data and will display the following information
- Highest bid price
- Lowest offer price
- Previous trading day volume of shares traded
- Latest traded price
The Company Website also provides a full repository of corporate information, news, annual reports, announcements and share price and trading data. Time series analysis of share trading and volumes traded including valuation parameters are also displayed.
OTC Trading share price data is displayed daily and disseminated by way of email alerts sent to opt-in registrants at the commencement of the following trading day and when news, announcements or other important information is released.
Shareholders requiring assistance or having queries regarding the above should contact the Transfer Agents on [email protected], or the Sponsoring Broker on [email protected] or submit a support request ticket through the Company Knowledge base after reading the repository of common questions and answers.
Corporate Governance
The Management and Board
The Company’s management and Board executive profiles are published on the Company Website.
Disclosure Guidelines
The Company’s main disclosure practices are summarized on our Company Website and are available for download. They may be amended from time to time.
Insider Trading Guidelines
These specific communications governance practices are summarized on our Website and are available for download. They may be amended from time to time.
Financial Reporting
The Company intends to release non-financial updates quarterly and report earnings for the half year and full year in accordance with following indicative calendar:-
- Year end: 30 September
- 1st Quarter Operational Update: Late February
- Year end abridged financial statements: End December
- Annual report release: Early February
- AGM: Early March
- Half year: 31 March
- Half year financial results publication: Early June
- 3rd Quarter Operational Update: Early August
Transfer & Settlement Agent
The Company has appointed First Transfer Secretaries to manage the OTC trading under audited mandated governance procedures to ensure that the matching of buyers and sellers of shares are carried out in a fair and equitable manner. Please contact the following:
Name: Mr Zivanai Mazhandu
Address: 1 Armagh Avenue, Corner Armagh Avenue & Mc Chlery Avenue, Eastlea, Harare, Zimbabwe
eMail: [email protected]
Website: http://www.fts-net.com/
Settlement
IMPORTANT: SETTLEMENT PROCEDURES MAY BE SUBJECT TO CHANGE WITHOUT NOTICE FROM TIME TO TIME. CONSULTATION WITH YOUR INVESTMENT ADVISORS OR BROKER OR THE TRANSFER AGENT IS STRONGLY ADVISED BEFORE TRANSACTING.
The Transfer Agent is responsible for the settlement of trades through a settlement bank account (the Settlement Account) which is funded by the buyers of shares within 24 hours of receipt of the brokers note.
Buyers will transfer the purchase consideration together with the statutory levies into the Settlement Account upon receipt of the Buying Deal Note from The Transfer Agent on T+1.
The sellers and statutory obligations e.g ZIMRA will be paid from the settlement account by the Transfer Agent.
The trading and settlement will be performed as follows-
● T + 0 – The day the shares are traded
● T + 1 – The day the account should be funded by the Buyer
● T + 3 – Shares will be transferred and the seller paid — T + 3
The Transfer Agent is responsible for the remittance and all the taxes as well as any other statutory payments. After settlement The Transfer Agent will advise the buyers to collect their share certificate.
Trading Costs And Taxation
IMPORTANT: PLEASE CONSULT YOUR INVESTMENT ADVISORS OR ACCOUNTANTS FOR THE TAXATION IMPLICATIONS OF OTC SHARE TRADING. THE FOLLOWING INFORMATION IS INDICATIVE AND IS SUBJECT TO CHANGE WITHOUT NOTICE.
The following commissions apply to the OTC Trading:
| Buy Side (% age) | Sell Side (% age) | Total (% age) | |
|---|---|---|---|
| Brokerage | 0.920 | 0.920 | 1.840 |
| OTC Platform Levy | 0.160 | 0.160 | 0.320 |
| Settlement Levy | 0.160 | 0.160 | 0.320 |
| Capital Gain tax* | – | 5.00 | 5.00 |
| Stamp duty | 0.250 | – | 0.250 |
| VAT on Brokerage – 14.5 % | 0.1334 | 0.1334 | 0.2668 |
| Total | 1.6234 | 6.3734 | 7.9968 |
The Company may from time to time undertake to meet the commissions of share trading by shareholders with smaller holdings of shares.
Dividends
From time to time the Company may declare dividends by way of public announcement advising the dividend’s date of declaration, the record date, ex-dividend date and date of payment.
Shareholders are asked to ensure that up to date banking details are submitted to the Transfer Agents.
Dividend queries may be addressed to the Transfer Agents directly or through the Company Knowledgebase on Powerspeed.co.zw.
Nominees, pledged shares and deceased estates
The Company does not restrict companies from Share certificates for shares held under nominee accounts as well as stockbrokers-controlled accounts will be sent to the respective All shares held on behalf of late estates will be processed after the following documents have been provided to the Transfer Agent:
- Letters of Administration (from High Court)
- Certified Consent to Transfer Letter / Certificate of Authority (from High Court)
- Certified Copy of Death Certificate
- Original share Certificate(s)
- Copies of IDs of beneficiaries
- Completed and signed Securities Transfer Form
Download the .pdf version:
Powerspeed Electrical – Guide to OTC Trading – 11 January 2021.pdf
