LONDON (Alliance News) - Real Good Food PLC on Thursday said it has been fined GBP450,000 by the London Stock Exchange in addition to a public censure of the company related to AIM market rules breaches.
Real Good Food shares were trading 7.0% higher at 5.75 pence following the announcement Thursday. However, the stock is down 24% over the past 12 months and 87% from a 2015 peak.
The company however, will pay only GBP300,000 in a discount for an early settlement of the fine, which relates to breaches of six AIM rules in the period to July 2017. The payment will be made from existing cash resources.
The rules relate to disclosure, annual accounts, dealing policy, and directors' compliance.
"The company regrets these breaches and fully understands and accepts the importance of sound corporate governance and complying with the AIM rules. It has cooperated fully with the London Stock Exchange's enquiry and, since the relevant events that led to the censure, the former chair and two other directors have left the company," Real Good Food said.
Since the breaches were discovered in September 2017, the company has taken action to improve procedures and controls adopting new corporate governance and procedures, it said.
"We are pleased to draw a line under these unfortunate incidents in the company's history, for which we have accepted responsibility. We now have in place fit-for-purpose corporate governance and are committed to complying with our obligations under the AIM rules," Chief Executive Officer Hugh Cawley said.
Separately, Real Good Food disclosed several changes to its board of directors as part of its process to improve governance.
Interim Non-Executive Chair Patrick Ridgwell will retire from the board with immediate effect and will be replaced by Independent Non-Executive Director Mike Holt.
Non-Executive Deputy Chair Chris Thomas also will retire from his role on the board, "not later" than July 31.
Finally, Anthony Ridgwell, the principal beneficiary of Napier Brown's holding in Real Good Food, will join the board as a non-executive director.
