Kingston, Jamaica) Sygnus Credit Investments Limited (SCI) has announced that it will be delisting its Jamaican dollar cross-listed shares and its US dollar cross-listed shares on the main market of the Jamaica stock exchange. The Company has two classes of shares, a US dollar share class identified as Sygnus Credit Investments Limited USD (SCIUSD) Ordinary Shares and a Jamaican dollar share class identified as Sygnus Credit Investments Limited JMD (SCIJMD) Ordinary Shares. The US dollar share class is cross-listed on the Jamaican dollar market as Sygnus Credit Investments Limited JMD (SCIUSD) Ordinary Shares, while the Jamaican dollar share class is cross listed on the US dollar market as Sygnus Credit Investments Limited USD (SCIJMD) Ordinary Shares.
The delisting will only affect the two cross-listings, that is, Sygnus Credit Investments Limited JMD (SCIUSD) Ordinary Shares and Sygnus Credit Investments Limited USD (SCIJMD) Ordinary Shares. The US dollar ordinary share class and the Jamaican dollar ordinary share class will not be affected.
Executive Vice President and Chief Investment Officer at Sygnus Group, Jason Morris shared, “SCI has taken the decision to delist the cross-listed shares, primarily because the original purpose of the cross-listing is not being fulfilled. We had created two classes of shares: a JMD class to satisfy a large institutional investor base which could only invest in local currency, and a USD class to satisfy retail investors whose habitat was foreign currency. Our initial intent with cross-listing was to provide shareholders with an opportunity to freely move between US dollar and Jamaican dollar investment habitats, depending on their particular needs, which would enhance price discovery and increase liquidity. In other words, – shareholders would have the flexibility to conduct trades in one currency and settle in another, as well as to choose the market in which they wish to participate at any given time.
However, this has not materialized, perhaps due to the fact that despite the USD share class being cross-listed on the Jamaican dollar market, the investors from the USD share class are not able to interact directly with the investors of the JMD share class and vice-versa. In other words, one cannot exchange their JMD shares for USD shares directly. After evaluating the low volume of transactions for the cross-listed shares, and the fees associated with cross-listing, we felt it prudent to delist them”.
Sygnus is the leading alternative investment management company in the Caribbean and Latin America, spanning private credit, real estate, and private equity. Sygnus manages Sygnus Credit Investments Limited (SCI) (80 Lady Musgrave Road) which is listed on the JSE and the largest Private Credit Investment company in the English-Speaking Caribbean. SCI is a pioneering private credit investment company, which offers creative debt financing to middle market businesses across the Caribbean. Sygnus Real Estate Finance Limited (SRF) provides flexible capital (Debt or Equity) to all classes of real estate assets (commercial, industrial, or residential). Sygnus Deneb Investments Limited (SDI) invests private equity capital in companies in the form of growth capital, buyouts, and turnarounds. The Sygnus Group also includes Acrecent Financial Corporation in Puerto Rico, a non-bank financial institution that provides asset-backed loans and leases to SMEs in Puerto Rico. Sygnus also offers its clients Investment Banking and Wealth Advisory.
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