The Analysts of Taking Stock with Kalilah Reynolds, say iCreate shareholders have a right to know what’s going on with the company in light of its recent troubles.

Company Founder and CEO, Tyrone Wilson, resigned from his position with immediate effect last week. On Monday, the Jamaica Stock Exchange announced that trading of the stock will be suspended for at least a month until the company releases its audited financial report. 

iCreate has been under scrutiny for months because of the delay in the publication of its financial reports.

The company had asked for an extension until August 31 for the publishing of its second-quarter report, which was due on March 30. The company then said its audited financial statements should be published by September 30  and its annual report, which should have been submitted by April 30, 15 days after that submission. 

Founder of Wealth Watch JA, Julian Morrison, said that iCreate’s board of directors should have been on top of the company’s filings.

“Suspension has a lot to do with governance because most Boards of Directors have systems in place to ensure that the gaps are filled as it relates to governance,” he said.

“There should be different perimeters put in place internally to hold the leadership of the company accountable,” he added.

Morrison noted that this is not the first time iCreate has been late with providing their reports.

“In successive financial years, we’ve seen cases where there are inconsistencies around the timing of how financials are released,” he said.

“I remember last year in the financial year 2022,  the annual report was about 11 months late. Now by the time investors get the information the business would have changed,” he added. 

Morrison said that iCreate shareholders deserve a clear answer on what caused the extension delays and why CEO and Founder, Tyrone Wilson, abruptly resigned.

“It’s just a matter of getting information on time and carrying investors along the growth journey because businesses take risks, that’s how they make money but it is the founder’s duty to be transparent and to communicate the vision and the story to the investors for them to stay along for the ride,” he explained.

Waiting game

Investment Research and Sovereign Risk Analyst at JMMB Group, Leovaughni Dillon, said all iCreate shareholders can do now is wait.

“Because the stock is suspended you can’t trade the shares, so you’re going to have to wait until they get all of this sorted out and then you have an opportunity to make an execution. Other than that there’s really nothing you can do,” he said.

He noted, however, that the suspension will impact investor confidence, especially in the short term so there could be a run on the stock when trading resumes.

“It’s not an insurmountable hurdle, I think it’s possible for them to get over it but it’s going to be hard. Plus, you know even before this there were some issues in terms of the performance of the company,” he said.