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- Abundant Produce (ABT) has asked to be delisted from the ASX
- The company believes the current trading prices don’t match Abundant’s underlying value
- Today, the company submitted a formal removal application to the ASX
- However, this move will need to be approved by the exchange and Abundant’s shareholders
- ABT also reported its interim results today
- The company announced a consolidated loss for the half-year of $1.4 million
- Abundant is down on the market this morning, trading at 2¢ apiece
Abundant Produce (ABT) has asked to be delisted from the Australian Securities Exchange (ASX) as it believes its share price inconsistent with the company’s value.
Today, the company submitted a formal application to the ASX to remove it from the official list. However, this move will need to be approved by the ASX and shareholders.
Directors of Abundant say the share price is significantly and materially lower than the underlying value of the company and also the net assets that these shares represent.
The company says the liquidity of the shares is insufficient to provide shareholders with an avenue to redeem their shares now or in the future.
Another reason for delisting is because of the financial, administrative compliance obligations and costs to maintain as an ASX listed company.
“The directors believe the long-term interests of shareholders are best served by delisting,” the company said.
Abundant Produce is currently Australia’s only ASX listed hybrid plant breeder. It aims to create vegetable seeds that are better taste and quality.
If the company is removed, shares will be no longer traded or quoted and will only potentially be capable of sale via off-market private transactions.
Abundant has also released its half-year report. It reported a consolidated loss of $1.4 million, which is 40.5 per cent higher than 2018’s $996,254.
As of the end of December, the company had approximately $1.8 million in the bank and it expects to receive a $535,000 tax return in March 2020.
For it’s Natural Health products, Australian pharmacy sales were up 50 per cent in the December quarter. ABT says this was due to strong demand for its Magnesium Spray and Gel.
Abundant’s magnesium offerings are topical solutions which help maintain healthy blood pressure and accelerate muscle recovery.
Abundant is down on the market this morning, trading at 2¢ apiece at 11:56 am AEDT.
