ASX Grants Extension to Connected IO Limited's Removal Deadline
CIO (CIO) Share Update July 2024 Monday 29th
ASX Grants Extension to Connected IO Limited's Removal Deadline
Connected IO Limited (ASX:CIO) has announced that the Australian Securities Exchange (ASX) has granted an extension to the company's removal deadline, allowing it more time to complete key acquisitions and capital raisings.
Instant Summary:
- ASX extends Connected IO Limited's removal deadline to October 28, 2024.
- Company has been suspended from quotation since July 27, 2022.
- Connected IO Limited plans to acquire Namibia U308 Pty Ltd and several tenements in Namibia.
- Company also proposes to acquire multiple projects in Western Australia.
- Capital raising efforts include an entitlement offer and a share placement to raise a total of $5.2 million.
ASX Grants Extension
The Australian Securities Exchange (ASX) has granted Connected IO Limited (ASX:CIO) an extension to the deadline for its automatic removal from the official list. Initially set for July 27, 2024, the new deadline is now October 28, 2024. This extension provides the company additional time to complete significant transactions and capital raisings.
Background
Connected IO Limited has been suspended from quotation on the ASX since July 27, 2022, following the sale of its previous IoT business. According to ASX Guidance Note 33, entities whose securities have been suspended for two continuous years are subject to automatic removal. However, ASX may grant a short extension if the entity can demonstrate that it is in the final stages of a transaction that will lead to the resumption of trading.
Key Acquisitions
On June 27, 2024, Connected IO Limited announced its plans to acquire Namibia U308 Pty Ltd, including its 80% interest in one granted tenement and three tenement applications in Namibia. These tenements are prospective for uranium. Additionally, the company has entered into a binding term sheet with Mining Equities Pty Ltd to acquire the Mt Genoa Project, Civilisation Bore Project, and the Pallingup Project located in Western Australia.
Capital Raisings
To support these acquisitions, Connected IO Limited has launched a non-renounceable entitlement offer and a share placement. The entitlement offer aims to raise $2.7 million through the issue of 13.5 million shares at $0.20 each. The share placement seeks to raise up to $2.5 million through the issue of 12.5 million shares at the same price. The company received all necessary shareholder approvals for these initiatives at its General Meeting on July 26, 2024.
Next Steps
With the ASX extension, Connected IO Limited is now focused on finalizing the acquisitions and capital raisings. The company aims to re-comply with Chapters 1 and 2 of the ASX Listing Rules to seek reinstatement of its securities to trading. Shareholders can view all ASX announcements on the ASX website or the company's website.
The extension granted by ASX is a positive development for Connected IO Limited. It provides the company with the necessary time to complete its strategic acquisitions and capital raisings, which could lead to the resumption of trading in its securities. This could potentially boost investor confidence and positively impact the company's stock price.
Investor Reaction:
Investors and analysts have expressed cautious optimism about the extension. 'The additional time granted by ASX is crucial for Connected IO Limited to finalize its acquisitions and capital raisings,' said one analyst. 'If successful, this could lead to a significant turnaround for the company.'
Conclusion:
Investors should keep a close eye on Connected IO Limited's progress in completing its acquisitions and capital raisings. The ASX extension provides a valuable opportunity for the company to re-establish itself in the market. Stay informed by following the company's announcements and assessing the potential long-term impacts on your investment portfolio.