(BFM Stock Exchange) – Euronext transferred the shares of three companies in the Paris Stock Exchange The sanctions compartment, failing to have published a period imparted from the financial elements requested by the stock market operator.

Like bad students, the companies of the Paris Stock Exchange can be put on the sidelines for not having respected the rules of the Parisian square.

Three companies listed on the flagship compartment of small and medium -sized Euronext Growth recently had bitter experience. The equipment supplier of the Cherinnov glass and ceramic industries, the group specializing in the “data intelligence” of the NAMR buildings and the manufacturer of boxes for Egide electronics all got to know the compartment of the sanctions of the Paris Stock Exchange.

The Euronext stock market operator placed the titles of these three companies in this compartment on May 16, in application of one of the provisions of the regulation valid for listed companies.

Each listed company is indeed required to comply with periodic information obligations, with more or less flexible rules depending on the compartment in which its securities are admitted to negotiation. And each year, a handful of transmitters take the risk of getting hit on the fingers by the Autorité des Marchés Financiers (AMF) and/or the Euronext market operator, which has happened to Namr, Egide and Cerninnov.

Business report of the annual financial report

The three companies had not published within a period of the financial elements requested by Euronext, which led the stock market operator to be raised. Namr, who is in a difficult financial situation, has been unable to transmit his annual financial report in time for the 2024 financial year.

Namr remains pending the approval decision by the Paris economic activity court, an asset transfer to Addactis, a software publisher for the insurance sector.

Egide was also sanctioned by the stock market operator for also missing this obligation before April 30. The electronics manufacturer awaits the reports of the auditors to publish its 2024 annual financial report.

CERINNOV also underwent Euronext wrath for not having also communicated its annual financial report for the financial year 2024. The equipment supplier of the glass and ceramic industries CERINNOV is currently in discussions its banking partners for a redevelopment of debt aimed at strengthening its short -term financial structure.

However, Euronext is intractable with companies that do not provide this document which guarantees transparent information for shareholders. The annual report of a company contains elements necessary for the information of shareholders of any company, or not, moreover, for the holding of the ordinary annual general meeting.

Namr, Egide and Cerinnov were therefore sanctioned for breach of the transmitter in accordance with article 7.3.1 of book I of the rules of the Euronext Growth markets. In the specific case, this is a breach of periodic obligations, namely the lack of publication of the annual report.

A battery of growing sanctions

And if the delayer company does not correct the situation quickly, a battery of growing sanctions can be engaged. At first, Euronext publishes and disseminates the names of companies behind publication (“Naming & Shaming”) to inform all market stakeholders and the company itself of this decision. It leads to the transfer of the securities of the company delaying in the compartment of sanctions or “penalty bench”.

“We are going to place the titles in the sanctions compartment, to isolate the company which has failed in its obligations other issuers in good standing. The aim being to protect the market stakeholders,” explained News Bulletin 247 Damien Pelletier, director of admission to Euronext Paris. Hence the notion of “penalty bench” or put on the sidelines in the language of Molière.

It is therefore the first level of the range of Euronext sanctions. If this banking is not sufficient, financial penalties can be pronounced according to the situation of the company. The market operator can also temporarily suspend the rating of the title before mounting a notch and pronouncing a possible radiation. The AMF is also likely to initiate legal action with a view to obtaining from the court a publication injunction under penalty.

This sanction is reversible if the delayer issuer complies with the rules decreed by the Euronext market operator. This was the case for the Boostheat group which had failed in this obligation in the spring of 2023 and which had managed to publish its 2022 annual financial report. And its titles were again admitted to negotiation on its original compartment, namely that of Euronext Growth.

“The assignment of a title to the compartment of the sanctions ends at the request of the issuer, or on the own initiative of the competent Euronext market company, provided that the issuer has remedied the offense by fulfilling the conditions required by the competent Euronext market company with a view to reinstating securities in the normal coast compartment”, recalls the stock market operator.

Other compartments, as confidential as the “penalty bench”, also punctuate the life of the Parisian stock market, in addition to the main regulated market of Euronext Paris in which the largest French companies and companies coexist whose stock market weight is a little more modest.