- 9 Spokes International (9SP) submits a formal application for its removal from the Australian Securities Exchange (ASX)
- According to the board, it considers the decision to be in the “best interests” of the company and its shareholders
- Following the company’s delisting, investors will only be able to sell shares via off-market private transactions or through the PrimaryMarkets share trading platform
- Subject to shareholder approval at an upcoming special meeting, 9 Spokes plans to delist on November 28
- Shares in 9 Spokes last traded at 0.4 cents in May
9 Spokes International (9SP) has submitted a formal application for its removal from the Australian Securities Exchange (ASX).
The company said its board considered the decision to be in the best interests of the company and its shareholders.
According to 9 Spokes, the ASX said it would agree to the request for the removal from its official list upon the satisfaction of certain conditions by 9SP.
These include shareholder approval to be sought through a special resolution, a notice of receiving shareholder approval and the company releasing full terms of the ASX decision to the market.
9 Spokes has set its special meeting of shareholders for November 24 to seek approval for the delisting.
The company said the key reasons for its decision included listing costs, costs of capital raises and material indirect costs associated with senior management and other employee time consumed by ASX-listed matters.
However, the board also listed some potential disadvantages of delisting for shareholders to consider, which include no guarantee of enhanced access to capital and the fact that various requirements including the Corporation Act will no longer apply.
Further, the biggest disadvantage would be that shareholders will not have the ability to sell their shares and realise their investment in the company via ASX trading.
Following delisting, shares in 9 Spokes will only be capable of sale via off-market private transactions or using the PrimaryMarkets share trading platform.
The company has tentatively set its delisting date to November 28, subject to shareholder approval.
Shares in 9 Spokes last traded at 0.4 cents in May.