The Chairman of the Tallinn Stock exchange blasts OA coffee, saying that admitting them into the exchange would damage the reputation of the institution as well as cause harm to investors.
OA Coffee is a coffee roaster that opened its first shop in the spring of 2021. The business had presented plans to the Listing and Surveillance Committee who conducts due diligence before a company is allowed to sell shares on their exchange in what is known as an Initial Public Offering, or IPO.
Smaller exchanges like the one in Tallinn, or the AIM exchange in the UK, are sometimes criticised (often with some justification) for weak oversight, allowing companies to raise money from investors on the back of unrealistic business plans.
In the case of OA Coffee, while we don’t have a detailed explanation of the cause of rejection, the following statement seems pretty clear.
In the committee’s view, if the shares of OA Coffee AS were admitted to trading, the above factors in their cumulative effect could damage the interests of investors as well as the reputation of First North and the stock exchange.
Sven Papp, the Chairman of the Committee.
OA Coffee was raising a relatively small amount in the region of €500,000 which they planned to use to expand their range of functional coffees.
OA Coffee, it seems, may have tried to raise funds without enough preparation or adequate reporting, and now may also have to pay lawyers and accountants for the unsuccessful application.
