Site Group calls in administrators as another ASX nanocap sinks

The pressures of inflation continue to weigh on the markets with several smaller companies currently looking worse for wear. And one of them, Site Group (ASX:SIT) – which has long since become illiquid – has finally gone under.

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This follows a market update on February 27 where Site admitted it was unable to reach an agreement with ASIC over an earlier inquiry that sought to assess how many fees it would owe the regulator for existing disputes.

Regarding that, the company wrote: “As noted, the ACCC submission proposed penalties are of a multiple greater than 10 times higher than the expectation previously provided for in the accounts of the Company being $1.1 million.”

The company did at one time provide educational services covering both white collar and blue collar subjects.

Its website continues to advertise online training modules for underground mining.

The company called in administrators on Thursday; private SV Partners are joint overseers.

“Business operations and financial affairs” are now being assessed as Site tries to find a way forward, but the company also provided shareholders a link to an ASIC webpage on what to do when a company goes insolvent.

Notably, there was no reassuring commentary.

Perhaps one doesn’t need it.

The stock’s one-year losses are down -66%, and that takes us to a price of one tenth of a share. Quite literally, it can’t get lower.

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Reinstated to quotation just in late February, the company’s shares were suspended once again earlier this week after it didn’t file any financials – putting it in a basket alongside Star Entertainment, Tigers Realm, Yowie Group and BPH Global.

And while its shares are worth a tenth of a cent, it’s got nearly 3.3B on issue. Yikes.

SIT last traded at 0.1cps.

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