The JSE has issued a reprimand to Merchantec Capital for allegedly neglecting its role as a gatekeeper for issuer compliance and failing to uphold market integrity when it first approved a Sens announcement released by Mantengu.
The Sens, published in May 2025, related to a complaint in which Mantengu asserted that a sophisticated criminal syndicate had conspired to lower its share price, with the intention of disrupting its growth strategy.
Merchantec Capital acted as the designated advisor to the mining investment company Mantengu until 1 July 2025.
The announcement was later identified as speculative, unverified, and lacking the requisite specificity and precision, making it unsuitable for dissemination.
The JSE publicly admonished Mantengu and imposed a three-year suspended fine, contingent upon the company’s compliance with the relevant listing requirements established by the exchange.
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JSE reprimands and fines Mantengu over unverified market claims
Mantengu responds to JSE after receiving a reprimand and fine
Following the announcement, Merchantec Capital (as the appointed advisor) reassessed its position and informed Mantengu that the announcements violated the listing requirements.
The mergers and acquisitions specialist presented its reasoning to Mantengu’s board and requested the retraction of the announcements. However, the company chose not to comply, leading the sponsor to withdraw its approval on 28 May 2025.
The JSE noted that although Merchantec took steps to correct the non-compliance, including requesting the withdrawal of the announcements and revoking its approval, the non-compliant information remained public due to Mantengu’s refusal to retract it.
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“The JSE contends that the DA’s [designated advisor] initial actions in this case did not meet the standards expected of designated advisors,” the exchange remarked in a Sens on Monday.
The JSE concluded that the advisor violated the listing requirements by inadequately guiding and advising the company on the regulations regarding price-sensitive information and Sens disclosures.
Sponsors and designated advisors are tasked with thoroughly evaluating, questioning, and, when necessary, denying approval for any Sens announcement that does not comply with the listing requirements.
The JSE emphasizes that, despite Merchantec Capital’s remedial actions, “it did not invalidate or rectify the initial failure to appropriately assess the announcements and to withhold approval prior to publication.”
