Keybridge Capital Limited Addresses ASX Queries on Compliance and Financial Reporting
KBC (KBC) Share Update September 2024 Friday 6th
Keybridge Capital Responds to ASX Queries on Related Party Transactions and Cash Flow Statement
Keybridge Capital Limited (ASX: KBC) has issued a detailed response to the Australian Securities Exchange (ASX) regarding queries about its related party transactions policy and the accuracy of its cash flow statement for the fiscal year 2024.
Instant Summary:
- Keybridge Capital responds to ASX queries about related party transactions.
- Clarification on $4.75 million restraint of trade payment to Nick Bolton.
- Explanation of unsecured loan to an entity owned by Nick Bolton.
- Company confirms compliance with ASX Listing Rules.
- Clarification on the recording of 'Loan facility payment' in FY24 cash flow statement.
Related Party Transactions
In response to ASX's queries about its related party transactions policy, Keybridge Capital clarified how its revised policy would manage specific transactions involving Nick Bolton. The company stated that Mr. Bolton, being a related party, would be recused from decisions where he has a conflict of interest. Non-conflicted directors would determine such matters, potentially seeking external professional advice if necessary. This approach aligns with both the revised and previous related party policies.
The transactions in question include a $4.75 million restraint of trade payment to Nick Bolton and an unsecured loan to an entity owned by him. Keybridge emphasized that the revised policy is designed to manage, not prohibit, related party transactions.
Cash Flow Statement Clarification
Keybridge also addressed the ASX's query regarding the 'Loan facility payment' recorded in its FY24 cash flow statement. The company explained that the cash flow statement was generated using an automated tool by external accountants and has since undergone further manual review. However, as the financial statements are unaudited and subject to change, Keybridge considers it premature to issue a revised report. The company aims to complete the audit process within the next fortnight and will announce any material changes earlier if necessary.
Compliance with Listing Rules
Keybridge confirmed its compliance with ASX Listing Rules, including Listing Rule 3.1, which mandates immediate disclosure of market-sensitive information. The company also confirmed that its responses to the ASX queries were authorized and approved by its board of directors.
The detailed responses from Keybridge Capital aim to reassure investors and maintain transparency regarding its financial practices and compliance with ASX regulations. While the clarification on related party transactions and the cash flow statement may alleviate some investor concerns, the ongoing audit process and potential changes to the financial statements could introduce uncertainty. Investors may remain cautious until the final audited results are released.
Investor Reaction:
Analysts are likely to view Keybridge Capital's proactive approach to addressing ASX queries positively. However, the unresolved status of the financial statements may lead to mixed reactions. Some investors may appreciate the transparency, while others might adopt a wait-and-see approach until the audit is completed.
Conclusion:
Investors should keep an eye on Keybridge Capital's upcoming announcements, particularly the final audited financial statements. The company's adherence to ASX regulations and transparent communication are positive signs, but the final audit results will be crucial in determining the stock's future performance.