The Philippine Stock Exchange yesterday suspended trading on the shares of technology firm Island Information & Technology Inc. (IS), citing its noncompliance to reportorial requirements on publicly listed companies.
In a memorandum, the PSE noted that failure to comply with the structured reportorial requirements of the local bourse would result in the automatic suspension of the trading of the shares of the concerned company for a maximum of three months.
In this case, IS failed to submit its annual report for fiscal year that ended on Oct. 31, 2017 before the Feb. 13, 2018 deadline.
IS was originally incorporated in 1959 as Island Oil Co. to primarily engage in oil exploration and mineral development projects. Due to losses incurred, the management decided to shift its oil exploration activities to metal mining in Isabela, thus the change in its name to Island Mining and Industrial Corp. in 1965.
The increasing costs of operations, fluctuating price of metals in the world market and deteriorating peace and order situation in the area where it operated severely affected the mining operations of IS, prompting its management to suspend its operations in 1981.
In 2000, the Securities and Exchange Commission (SEC) approved another change in its corporate name to its present name, alongside the change in its primary purpose to information technology. In 2005, the SEC approved another amendment to its articles of incorporation, particularly its primary and secondary purposes. The new primary purpose of IS is to provide cargo container management and integrated logistics services. Its secondary purpose is the provision of information technology services.
In 2014, the company entered into a memorandum of understanding (MOU) with a potential investor to assess the feasibility of entering into a merger, consolidation, purchase or exchange of shares, but the MOU lapsed in February 2015 without a binding agreement.
IS, which has a public ownership of 81 percent, is valued by the stock market at P654.7 million.