The GSTechnologies Ltd (LON: GST) share price plunged 13.2% after the company’s auditor Elderton Audit Pty Ltd, resigned from the role. Investors reacted negatively despite the move originating from a change in strategy by the auditor.
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In a letter sent to GSTechnologies, Elderton stated: “There has been a change in Elderton's strategy after the demise of our Managing Director Nicholas Hollens earlier this year, as a result of which, it has been decided that Elderton will only be focusing on local Australian audits.”
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The above statement indicates that the auditor’s resignation was not driven by some wrongdoing on GSTechnologies’ part but was motivated by other factors outside the company’s control.
GSTechnologies has launched a search for a new auditor, which should not take long given the high number of auditors available to public companies. However, many will be interested in the firm picked as the new auditor.
Once appointed, the new auditor will have to be approved by the company’s shareholders at a general meeting in line with the regulations governing public companies. However, the shareholders could also reject the auditor forcing the company to appoint another auditor.
GSTechnologies has recently made significant progress on multiple fronts after disposing of its EMS Wiring Systems division in early October to focus on its core fintech business. The company also held its AGM in the same month.
The fintech firm executed a soft launch of its GS20 Exchange in mid-November and is on track to fully launch the crypto asset exchange, despite the ongoing crypto winter that has seen many crypto firms implode this year.
The soft launch occurred after the Lithuanian Financial Crime Investigation Service (FCIS) approved GSTechnologies’ acquisition of cryptocurrency exchange Gindla, which changed its name to GS Fintech UAB and will trade as the GS20 Exchange.
GSTechnologies shares are down 71.49% this year, and many investors hope they will rally higher next year.
*This is not investment advice.
GSTechnologies share price.
The GSTechnologies share price plunged 14.47% to trade at 0.65p, falling from Thursday’s closing price of 0.76p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.