New Talisman Gold Mines to Delist from ASX - November 2024 Update
NTL (NTL) Share Update November 2024 Monday 18th
New Talisman Gold Mines to Delist from ASX, Focus on NZX
New Talisman Gold Mines Limited (ASX: NTL) has announced its decision to delist from the Australian Securities Exchange (ASX) while maintaining its listing on the New Zealand Stock Exchange (NZX).
Instant Summary:
- NTL to delist from ASX, effective 20 December 2024.
- Shares will continue to trade on the NZX.
- Unmarketable Parcel Sale Facility established for small shareholders.
- Majority of NTL's operations and shareholders are based in New Zealand.
Delisting Details
New Talisman Gold Mines Limited has received approval from ASX Limited to remove its ordinary shares from the official list of the ASX. This decision comes after considering several strategic factors, with the delisting expected to take effect on 20 December 2024. The company's shares will continue to be listed and traded on the NZX Main Board.
Reasons for Delisting
The board of NTL has cited several reasons for the delisting. Primarily, the company is based in New Zealand, with its mining operations and management located there. Additionally, a significant portion of its shareholders, approximately 87.63%, are New Zealand-based, and most trading occurs on the NZX.
The ASX listing has not provided the anticipated liquidity benefits, and maintaining the listing incurs substantial costs and management time. By focusing on the NZX, NTL aims to allocate resources more effectively.
Unmarketable Parcel Sale Facility
To assist shareholders with small holdings, NTL is offering an Unmarketable Parcel Sale Facility. This facility allows shareholders with holdings valued under NZ$1,000 to sell their shares without brokerage fees. Shareholders can opt-out if they prefer to retain their shares on the NZX.
Options for Shareholders
Shareholders have several options regarding their holdings. They can sell their shares on the ASX before the suspension date or retain them, in which case their shares will be transferred to the New Zealand register. The company has provided detailed instructions for shareholders wishing to participate in the Unmarketable Parcel Sale Facility.
The delisting from the ASX is expected to reduce administrative costs and allow NTL to focus its efforts on its primary market in New Zealand. While this move may initially concern some investors, the strategic alignment with its operational base could strengthen the company's long-term prospects.
Investor Reaction:
Analysts may view the delisting as a logical step given the company's New Zealand focus. Some investors might be concerned about reduced liquidity options, but the continued NZX listing provides a viable trading platform.
Conclusion:
Investors should consider the implications of the ASX delisting and evaluate their options regarding NTL shares. The company's focus on the NZX aligns with its strategic goals, potentially benefiting shareholders in the long run.