My interpretation is that if the company does not invest in an ongoing operation by 22 June the ASX has the right, but not obligation to suspend the securities of the company. The company could have it's securities suspended for up to 3 years, at which time they will be removed from the official list, per Guidance Note 33. My understanding is that the company would then become a privately held company. I have not come across any law requiring the company to liquidate.
However, the board at any time would have the jurisdiction to wind the company up and return cash to holders.
I'm confident that they will come up with a solid investment. It is a bloodbath out there at the moment. I am mostly worried about the board driving a hard enough bargain.
MEL Price at posting:
5.7¢ Sentiment: None Disclosure: Held
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