LBC Express says it is addressing SEC show-cause order on report delay

LBC EXPRESS Holdings, Inc. said it is addressing a show-cause order issued by the Securities and Exchange Commission (SEC) over the alleged late submission of its 2021 sustainability report.

The order was issued by the SEC’s Corporate Governance and Finance Department, which directed the company to explain its alleged delay in submitting the report.

LBC said it received the show-cause order on Sept. 29.

The SEC order, dated Aug. 5, required the company to explain within 10 days from receipt its alleged one-day delay in filing the 2021 sustainability report, which was due on May 16, 2022.

LBC said it is compiling its records of submission to the regulator, noting that it is also clarifying with the SEC the basis for the order and the possible imposition of a penalty.

“Furthermore, the corporation intends to file its response to the show cause letter within the allotted period. The Corporation will provide further developments on this matter as soon as practicable,” it said in a regulatory filing on Tuesday.

The company said the SEC noted that the late attachment of its sustainability report to its annual report is subject to penalties ranging from a reprimand or warning for the first offense; P30,000 and P500 per day of delay for the second offense; and P60,000 plus P1,000 per day of delay in filing the amended report for the third offense.

LBC Express is a listed holding company with two main business segments: logistics and money transfer services. The logistics segment serves retail and corporate customers, while the money transfer segment covers domestic and international remittance services.

At the stock exchange on Tuesday, shares in LBC fell 79 centavos or 10.22% to P6.94 apiece. — Ashley Erika O. Jose