(BFM Bourse) – The sanctions commission of the Stock Exchange policeman requested this fine against the former manager and founder of Navya. The AMF believes that the company took far too long to communicate on its financial health for 2018.
A sanction of 150,000 euros was requested on Friday before the sanctions committee of the Financial Markets Authority (AMF) against the former manager and founder of Navya, who is accused of not having communicated enough early that the company was not going to achieve its financial goals in 2018.
On December 7, 2018, Navya, a pioneer of autonomous vehicles founded four years earlier by Franck Sapet, published a press release saying that it “considers that the announced turnover objective of 30 million euros for 2018 will not be reached” and that it will rather amount to between 17 and 19 million euros.
A “shocking” discrepancy
After this publication, the group, which had entered the Paris Stock Exchange six months earlier, saw its price drop by more than 20% in one day. Franck Sapet leaves management during the month.
The AMF rapporteur believes that the company took far too long to communicate about its financial health and that an email from the financial director at the time made it “predictable no later than October 18” that it would be difficult to achieve the announced objectives.
“Nothing justifies the seven-week delay, such a delay is particularly shocking”, especially since “this failure relates to negative information”, estimated the representative of the AMF college.
“During this seven-week period, Navya also confirmed her objectives”, it is “counter-information”, she added.
“A goal not achieved”
It appears from the investigation carried out by AMF investigators that the success of Navya’s financial objectives was conditional on several uncertain elements, known since September, including the evolution of regulations in the United States, which threatened 2 million euros in turnover, and the culmination of a project with Keolis, one of its historic shareholders.
“In October, all the points mentioned were on track,” defended Franck Sapet, also explaining that his company usually achieved the majority of its turnover in the last quarter.
It is in December, “when the supervisory board is held”, that it “is said that the objective will not be achieved”, the company then communicating immediately, maintained Me Eric Boillot, lawyer for Franck Sapet.
The sanctions committee is expected to make its decision in the coming weeks. She will also comment on the second complaint against Franck Sapet for not having declared to the AMF a threshold crossing of less than 5% of Navya’s capital in April 2022.
(With AFP)
SS – ©2023 BFM Bourse
Are you following this action?
Receive all the information on NAVYA in real time: