Visioneering Technologies, Inc. (ASX:VTI) Announces Voluntary Delisting
Delisting Intentions
Visioneering Technologies, Inc. (ASX:VTI) has submitted a formal request to the Australian Securities Exchange (ASX) to initiate a voluntary delisting. This follows in-principle approval received from ASX, contingent on the satisfaction of specific conditions. The delisting proposal will be presented for shareholder approval at a Special Meeting slated for January 10, 2025.
Reasons for Delisting
The company’s Board identifies several key reasons for seeking delisting, including ongoing fluctuations in the quoted price of its CDIs, which seem detached from news flows. The Board believes that these factors threaten the fair valuation of the company and limit its ability to raise capital effectively. CEO of Visioneering Technologies, Inc., is focused on ensuring future growth opportunities by suggesting that an unlisted environment may facilitate more advantageous capital raising efforts.
The Board elaborates that the administrative costs associated with maintaining an ASX listing are disproportionately high, with potential savings of USD 75,000 a month anticipated post-delisting. Moreover, the complicated regulatory environment has hampered the management’s ability to concentrate on core business operations.
Shareholder Implications
If delisted, shareholders will no longer be able to trade CDIs on the ASX but will be allowed to conduct off-market private transactions. The company plans to convert CDIs to underlying shares if not sold before the suspension begins on February 6, 2025. After the delisting, the ability to raise capital will shift to require a full prospectus or private placements, a change from the current low-documentation fundraising capability.
Future Outlook
While the Board believes that delisting may enhance capital access in the long term, it acknowledges that there is no guarantee of better terms post-delisting. The Board emphasizes that they will still provide periodic business updates and ensure compliance with Delaware General Corporation Law after the delisting.
In conclusion, the company aims to alleviate the burden of its current listing while strengthening its financial standing in the future.
Motley Fool contributor Abbie Stokes 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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