Slip ups in the process of registering shares purchased in a new company in The Bahamas has resulted in material changes to 2020 year-end results for Everything Fresh Limited.
Management announced on March 18, 2021, that despite timely efforts by the Jamaican entity to complete the process of acquiring 60 per cent shareholding in Everything Fresh Bahamas Limited, there will be an additional delay as authorities in The Bahamas conclude the registration process under COVID-19 conditions.
In a letter to shareholders, Everything Fresh Chairman Gregory Pullen noted, “We received our share certificate for 3,000 shares from the Bahamian law firm representing Everything Fresh Bahamas Limited. The share certificate date showed an effective date of July 1, 2021.”
However, the share certificate should have read July 1, 2020, which is the date previously published by Everything Fresh Jamaica Limited.
“To the best of our knowledge, we thought that the transfer process was completed and, therefore, proceeded to consolidate the results of the Bahamas company in our third quarter. In January of this year, it came to our attention that, because of the disruptions to commercial activities in The Bahamas due to the Covid-19 pandemic, a statutory procedure (an important additional filing) was left incomplete at the year end,” Pullen said in reference to the acquisition process.
As a consequence, the company did not meet the requirements to prepare consolidated financial statements for the year ended December 31, 2020.
Pullen outlined that the company is taking the final steps toward completing the acquisition process “as soon as possible.
In addition to the year-end revision, the company has also taken steps to revise its Q3 results with disclosure of the amendments attached in the new posting.
Everything Fresh Bahamas Limited’s core focus is supplying food products to supermarkets and the retail trade in The Bahamas.
Its Jamaican counterpart principally supplies the hotel sector. Revenue for the Jamaican company has contracted by half since the cut back in the tourism industry due to the spread of Covid-19.
As at December 31, 2020, revenue for Everything Fresh Jamaica Limited dipped to JM$1.05 billion when compared with JM$2.2 billion at year-end 2019. Moreover, the company ended the year with a net loss of JM$177.77 million, exceeding the JM$103.67 million at year-end 2019.