Keybridge Capital Limited (ASX:KBC) Responds to ASX Queries
Keybridge Capital Limited (ASX:KBC) has responded to recent inquiries from the Australian Securities Exchange (ASX) regarding its financial reporting and adherence to listing rules. The company asserts its financial position remains stable and adequate for continued quotation of its securities.
Financial Position Assured
Keybridge highlighted its total assets exceeding $25 million and a profit after tax of over $7 million for the year ending 30 June 2024 as justifications for the ongoing listing. The company noted that concerns raised in a Supreme Court of NSW ruling related to an unsecured loan of $4.95 million have been mischaracterised and do not impact its solvency.
John Patton, Company Secretary, stated, “Keybridge remains committed to transparency and will provide regular updates to the ASX in line with material developments.”
Loan Documentation Confirmed
The company confirmed that the previously undocumented $4.95 million loan to an ‘asset rich entity’ owned by Mr Bolton was executed on 30 September 2024. The loan holds commercial terms, with a 10% interest rate and a maturity date aligned with a restraint of trade obligation. Keybridge affirms that this loan is secured against an expected liability, minimising the risk of non-repayment.
Compliance with Listing Rules
Keybridge assured the ASX that it is in compliance with Listing Rules, including 3.1 and 12.2. The company intends to maintain transparency in its reports, opting for concise monthly updates on its net tangible asset backing. Patton reiterated the company’s commitment to uphold its obligations under Australian corporate law and ASX regulations.
Keybridge has also faced recent queries regarding its net asset backing reports, indicating a transition to more streamlined disclosures consistent with practices adopted by other investment firms.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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