ASX Sets Deadlines for Long-Term Suspended Entities - 10 July 2024
A1 INVESTMENTS & RESOURCES LTD (AYI) Share Update July 2024 Wednesday 10th
ASX Announces Deadlines for Long-Term Suspended Entities
In a recent announcement, the Australian Securities Exchange (ASX) has outlined critical deadlines for entities that have been suspended for more than three months. These entities must meet specific reporting and trading resumption requirements to avoid delisting.
Instant Summary:
- Entities have 1 year to lodge the oldest outstanding periodic report.
- Entities have 2 years to execute plans for trading resumption.
- Failure to meet deadlines will result in removal from the official list.
- ASX may grant short extensions in limited circumstances.
Overview of the Announcement
The ASX has issued a comprehensive list of entities that have been suspended for over three months. These entities are required to meet specific deadlines to continue their listing on the ASX. The announcement includes the name and ASX code of each entity, the outstanding periodic reports, and the deadlines for lodging these reports and resuming trading.
Entities such as A1 Investments & Resources Ltd (AYI) and Advanced Health Intelligence Ltd (AHI) are among those listed. They have until 31 July 2024 and 5 February 2026, respectively, to meet their reporting obligations and resume trading.
Deadlines and Requirements
The ASX has set a one-year deadline for entities to lodge their oldest outstanding periodic report. Additionally, these entities have a two-year deadline to execute their plans for resuming trading in their securities to the satisfaction of the ASX. If these deadlines are not met, the entities will be removed from the official list, usually effective from the open of trading on the first trading day after the deadline date.
For example, A1 Investments & Resources Ltd must lodge its Fourth Quarter Activities Report, Fourth Quarter Cashflow Report, and several other reports by 31 July 2024. If they fail to do so, they risk being delisted by 1 August 2025.
Implications for Long-Term Suspended Entities
The ASX emphasizes that reinstatement of securities to quotation is not automatic. Entities must address the reasons for their ongoing suspension and comply with the ASX Listing Rules at the point of reinstatement. The ASX recommends that these entities implement a system of periodic (at least quarterly) disclosures to keep the market and their security holders informed about their status and plans for resuming trading.
For instance, Armour Energy Limited (AJQ) has until 31 January 2025 to lodge its Second Quarter Activities Report and other outstanding reports. The company must also execute its plans for trading resumption by 10 November 2025 to avoid delisting.
This announcement is likely to have a significant impact on the entities listed. Investors in these companies should be aware of the deadlines and the potential risks of delisting. The requirement for regular updates and compliance with ASX Listing Rules may also affect the operational strategies of these entities. Companies that fail to meet the deadlines could see a negative impact on their stock prices and investor confidence.
Investor Reaction:
Analysts have pointed out that the ASX's stringent deadlines are a necessary step to ensure market integrity. Some investors are concerned about the potential delisting of these entities, while others see it as an opportunity for companies to improve their transparency and compliance.
Conclusion:
Investors should closely monitor the progress of the long-term suspended entities listed in the ASX announcement. Meeting the reporting and trading resumption deadlines will be crucial for these companies to maintain their listing status. Investors are advised to stay informed about any updates or extensions granted by the ASX and assess the potential impact on their investment portfolios.