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(Photo: washingtonpost.com)

Jamaica’s Sweet River delisted after abattoir loss

(Photo: washingtonpost.com)

The loss of a 12,000 square foot, ‘state of the art’, abattoir facility appears to have led to the removal of slaughtering company Sweet River Abattoir & Supplies Company Limited (SRA) from the Jamaica Stock Exchange (JSE).

(Photo: washingtonpost.com)

The abattoir was constructed on lands acquired in the Sweet River area of Westmoreland in 2012 at significant cost.

Bank loans received from First Global Bank were called in early 2019, leading to the auction of the facility in November.

The manufacturing company has been delisted from the Junior Market of the JSE, the Exchange indicated on Monday February 10, 2020.

The company’s removal took effect today. The JSE said the company’s removal was in accordance with Junior Market Rule 505 (14) (a) (i) and the Company’s failure to remedy Board Level and Financial Requirements breaches.

Earlier in January, the company’s board indicated that it was seeking guidance on the sale of the abattoir and that it would also be late with its reports.

Sweet River is in the business of slaughtering and processing of pigs.

The new abattoir facilities belonging to it were sold last year to Restaurant Associates when Sweet River’s banker, First Global acted on unpaid loans.

Chairman Henry Graham indicated in January, via notice on the JSE that notice that the company is continuing operations and would be restructured. He noted however that restructuring was delayed by the auction.

Sweet River and Supplies encountered problems which led to the erosion of its capital base, repeated losses and an inability to service debt.

The company listed on the Junior Market of the Jamaica Stock Exchange six year ago, in 2014. It raised $180 million of equity capital in its IPO that year. The money was to assist the company in expanding its processing facility. 

Sweet River was previously owned and operated as a part of a GraceKennedy & Company Limited.

Many of its shareholders are pig farmers.  The IPO offer represented about 46 per cent of its authorised share capital.