First National Bank has given AYO Technology Solutions notice to close its transactional banking facility with effect from 3 May 2021.
According to a statement from the company, it does not have any lending facilities with FNB.
AYO is contesting the move. “Despite the company’s best efforts, FNB has not provided AYO with what it regards as valid reasons for termination,” the statement on the Stock Exchange News Service (SENS) reads.
“The company believes that it is entitled to fair treatment and as a result, the company has instituted legal proceedings against FNB for its decision to close the company’s transactional banking facility.
AYO is also in the process of reviewing its options for transactional banking, it states.
As a result of this development, AYO has issued a cautionary announcement, and advises shareholders to exercise caution when dealing in its securities until a further announcement is made.