- Syngas (SYS) has formally applied to delist from the official list of the Australian Securities Exchange (ASX)
- The company’s reasons included lack of liquidity, listing costs, limited operations, minority shareholders, and to complete an acquisition
- Syngas does not plan to undertake any share sale facility which would allow shareholders to dispose of their company shares
- Delisting is subject to shareholder approval, which the company will seek at a general meeting in July or August 2020
- Syngas shares last traded for 0.4 cents each back in September 2018
Syngas (SYS) has formally applied to delist from the official list of the Australian Securities Exchange (ASX).
The ASX has accepted the application, and intends to remove the company from its official list. This action is subject to a number of conditions which the ASX has set regarding the delisting.
Syngas’ reasons for delisting included lack of liquidity, listing costs, limited operations, and minority shareholders. There has been no trading in the company’s shares since September 5, 2018, when the ASX suspended Syngas from official quotation.
The company’s board estimated that listing on the ASX costs approximately $250,000 a year. Syngas also has limited operations, and therefore little benefit from being listed.
The company also applied for the delisting in order to complete the acquisition of Half Moon. Syngas will receive a $1.3 million unsecured loan facility to finance the acquisition and working capital of the company.
The company does not plan to undertake any share sale facility which would allow shareholders to dispose of their company shares. To date, shareholders have been unable to dispose of their company shares since Syngas’ suspension in 2018.
Shareholders in Syngas will only be able to sell their company shares through off-market private transactions. Those who intend to sell shares after the delisting will have to find a buyer and complete a standard off-market transfer form.
However, Syngas’ proposed delisting is subject to shareholder approval. The company plans to seek this approval at a general meeting, held in July or August 2020. If the general meeting takes place (as planned) on July 31, and gains shareholder approval, the delisting will occur on August 3, 2020.
After delisting and restructuring the company, Syngas might seek to relist on the ASX. This will depend on if the board deems it suitable for the company’s business.
Syngas shares last traded for 0.4 cents each back in September 2018.