Asaplus Resources Market Update: Delisting, Beikeng Mine Permit, and Financial Statements - 16 July 2024
ASAPLUS RESOURCES LIMITED (AJY) Share Update July 2024 Tuesday 16th
Asaplus Resources Announces Major Updates on Delisting and Beikeng Mine Permit
Asaplus Resources Limited has released a comprehensive market update addressing its intention to delist, the status of the Beikeng Mine extraction permit renewal, expected financial statement release dates, and responses to ASX query letters.
Instant Summary:
- Company decides not to delist after stakeholder consultations.
- Discussions ongoing to defer or convert a significant debt into equity.
- Beikeng Mine extraction permit renewal expected by Q2 2025.
- Financial statements for HY2024 and FY2024 to be released by 23 August 2024 and 30 September 2024 respectively.
- Company to respond to ASX query letters by 17 July 2024.
Intention to Delist
On 25 January 2024, Asaplus Resources Limited announced that an investor, TEE Chee Seng, demanded immediate repayment of a convertible loan and outstanding premiums totaling RMB6,720,000 (approximately A$1,367,000). Unable to repay the debt, the company initially intended to seek shareholders' approval to delist.
However, after extensive informal consultations with stakeholders, the company decided against delisting. Instead, it plans to re-capitalize and seek re-quotation of its securities on the exchange. Discussions are ongoing with the investor to defer repayment or convert the debt into equity. The company is also seeking other investors to raise funds for operations and debt repayment.
Status on Renewal of the Beikeng Mine Extraction Permit
The Beikeng Mine extraction permit expired on 4 February 2023. The company began the renewal process in May 2022, passing reviews by 14 county-level authorities and receiving county government approval by September 2022. However, a new policy issued in February 2023 by Sanming City requires additional approvals.
As of 15 January 2024, the company completed re-signing procedures under the new policy and submitted the renewal application to the Datian County work leading group for mining review. The company expects the permit to be renewed by Q2 2025.
Expected Dates of Releases to Financial Statements
The company has not yet released its HY2024 financial report, which was due on 15 March 2024. The FY2024 financial report is due by 30 September 2024. Director Ding Poi Bor has agreed to fund the review and audit costs, with the HY2024 report expected by 23 August 2024 and the FY2024 report on schedule by 30 September 2024.
Response to ASX Query Letters
The ASX sent a financial condition and activities query letter dated 28 December 2023, with a public release on 22 January 2024. The company intends to fully respond by 29 July 2024. Another query letter dated 11 July 2024 will be responded to by 17 July 2024.
The decision not to delist and the ongoing efforts to re-capitalize the company are likely to stabilize investor confidence. The renewal of the Beikeng Mine extraction permit, though delayed, is expected to enhance the company's operational capabilities by eliminating smaller competitors. The timely release of financial statements will also be crucial in maintaining transparency and investor trust.
Investor Reaction:
Investors and analysts have shown cautious optimism regarding the company's decision to re-capitalize and the expected renewal of the Beikeng Mine permit. The commitment to transparency and timely financial reporting has been positively received.
Conclusion:
Investors should closely monitor the company's progress on the Beikeng Mine permit renewal and the re-capitalization plan. The upcoming financial statement releases and responses to ASX query letters will provide further insights into the company's financial health and strategic direction.