Why was CIENCO4 severely punished?

(NLDO)- CIENCO4 was fined nearly 700 million VND for violating a series of regulations on the stock market.

The State Securities Commission has just issued a decision on administrative sanctions for violations in the field of securities and the securities market and a decision on forcing the application of remedial measures against CIENCO4 Group Joint Stock Company - CIENCO4 stock code C4G.

Accordingly, CIENCO4 was fined 65 million VND for the act of disclosing information with incomplete content according to legal regulations related to financial reports, stock issuance, etc. At the same time, it was fined 125 million VND for violating regulations on transactions with shareholders, business managers and related persons of these subjects.

Specifically, Trustlink Investment and Service Joint Stock Company (Trustlink) is a shareholder, but the company used proceeds from the 2023 public offering to lend to Trustlink under signed loan contracts without disclosure.

Building with CIENCO4 office

In particular, Cienco4 was fined VND350 million for changing the capital use plan and the amount of money collected from the public offering of securities without going through the General Meeting of Shareholders as prescribed. Not to mention, the amount of money collected from the offering was not disclosed in detail.

Of which, VND 600 billion was used from the 2023 public offering to lend to Trustlink. Thus, the Company changed the plan to use the proceeds from the offering with a change in value greater than 50% of the proceeds from the offering (VND 1,123.6 billion) without being approved by the shareholders' meeting.

The company was also fined VND92.5 million for failing to report information on the use of temporarily idle funds to deposit/lend/purchase short-term deposit certificates at financial institutions, with a maximum amount not exceeding VND555 billion.

At the same time, the remedial measure applied is to force the nearest shareholders' meeting to approve the change in the plan to use the proceeds from the 2023 public offering of securities according to regulations.

Thus, CIENCO4 was fined a total of 697.5 million VND.

On the stock market, C4G shares are trading on the UpCom floor at a price of more than VND 8,600/share.

Source: https://nld.com.vn/vi-sao-cong-ty-cp-tap-doan-cienco4-bi-xu-phat-nang-196241101110214875.htm