- Digital marketing platform, Otherlevels (OLV) has submitted a formal application to remove its ordinary shares from the ASX Official List
- The company’s reasons include low share prices, limited liquidity, high ongoing costs, an inability to raise capital, and concentrated shareholdings
- Otherlevels will hold a special general meeting with shareholders in early July, to gain approval for the delisting
- If the company successfully completes the process, it will officially leave the ASX on August 8 2020
- Otherlevels Holdings’ shares have dropped 28.6 per cent on the back of this news and are trading for 0.5 cents each
Digital marketing platform, Otherlevels (OLV) has submitted a formal application to remove its ordinary shares from the ASX Official List.
The company has cited a number of reasons for its decision to delist, which it feels is in its best interests. The reasons include low share prices, limited trading liquidity, high ongoing costs, an inability to raise capital, and concentrated shareholdings.
Recent trading of Otherlevels’ shares has indeed been limited, in both frequency and volume. The company feels the current price of its shares on the ASX do not reflect its underlying asset value.
The price of maintaining an ASX listing involves financial and administrative costs, and compliance obligations. Otherlevels no longer sees these costs as justifiable ones, considering the poor returns.
The company is also concerned that approximately 80 per cent of its shares are held by only 20 security holders. Most of them are long-term investors, who are unlikely to reduce their holdings in the company any time soon.
Otherlevels believes that this concentration of ownership in such a small numbers of shareholders is now a limitation.
The Australian Securities Exchange has already confirmed that it is likely to remove the company from its Official List. This will be possible once Otherlevels complies with certain conditions.
One such condition for the proposed delisting is approval from the company’s shareholders. As such, Otherlevels will hold a special general meeting with its shareholders, on or around July 8 2020.
If the company gains shareholder approval for the delisting, it will officially leave the ASX on or around August 8 2020. In the month between the meeting and the delisting date, shareholders will still be able to sell their securities on the ASX, if they wish.
Otherlevels Holdings’s shares have dropped by a significant 28.6 per cent on the back of this news and are trading for 0.5 cents each at 10:21 am AEST.