Report on the sanctions imposed on the Issuers by the Organizer of the Alternative Trading System

For more than a year, the Management Board of the Warsaw Stock Exchange has been introducing changes aimed at increasing the transparency of private bids and protecting investors in the NewConnect market.

There have been introduced more restrictive provisions with which the issuers must comply, and the levels of penalties which the organizer of the Alternative Trading System may impose on the Issuers and Authorized Advisors have been increased,. The organizer may impose a penalty of admonition, a financial penalty of up to PLN 50,000, it may suspend the listings of the company or exclude it from the Alternative Trading System.

In 2013 one of the companies was obliged to prepare the analysis of its financial and economic condition, and its projections for the future.

In 2013 there were as many as 85 penalties of suspension of listings of companies and the financial instruments of 14 issuers were excluded from trading.

Additionally, as many as 18 entities were admonished and 23 received financial penalties of the amount of over PLN 370,000.

The chart below presents the changing tendency that may be observed since the introduction of changes by the Warsaw Stock Exchange.

Number of imposed penalties