AB1 - private off market trading facility by mgmgt, page-27

I haven't actually seen anyone go over in detail the reasons why AB1 were delisted. I thought id take a look at ASX's listing rules, and make them available for everyone as to why the asx decided to delist. Any of the breached rules that i havent added are former, and no longer available to view. I do understand where the ASX was coming from, and I feel they had to make their decision because their hands where tied, as the damage was already done. Despite AB1's efforts to resolve those issues. However, I still dont think any of these breaches are enough to stop them from listing elsewhere when the time comes. Especially if they prove their business in the meantime and go in with a fresh start. They were clearly on the ball towards the end, but by that point It seemed it was too late.

As for when/where they relist, only time will tell. I honestly wouldnt be suprised if it was next year. It may give them more time to prove many of their acquisitions are profitable, which would certainly provide added assurance to any exchange they brought their business to.

Overall it seemed like lodging issues for the most part, some rookie mistakes like the last one on this list, and not having appropriate structure and operations. I would assume that would have to do with what AB1 addressed in their last announcement (Involvement in cryptocurrency related activities and substantial use of SAFEs issued by subsidiaries).


Make of it what you will.

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9 March 2020
Animoca Brands Corporation Limited(ASX: AB1)–Removal from Official List

Since January 2019, AB1 has, in ASX’s opinion, breached Listing Rules 3.1, 4.2B, 4.3A,4.3D, 4.7.4 and 4.10.3, the former Listing Rules 3.10.5A, 7.1A.3, and 7.1A.4,1and Listing Rules12.5, 15.7 and 19.11.These breaches have occurred despite ASX’s ongoing and intensive efforts over that period to highlight to AB1 its obligations under relevant ASX Listing Rules and guidance.

ASX considers that AB1 lacks adequate resources, systems and controls to comply with its obligations under the Listing Rules. While ASX acknowledges that AB1 has recently taken on some additional staff to boost its compliance resources, ASX is not satisfied that these measures will be sufficient to achieve the level of compliance ASX reasonably expects of a listed entity. In the circumstances, ASX considers that it is appropriate that AB1 be removed from the ASX Official List.
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3.1 Once an entity is or becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities, the entity must immediately tell ASX that information.

4.2B The entity must give the information and documents required by listing rule 4.2A to ASX immediately they are ready to be given to ASX, and no later than the time that it lodges any accounts with ASIC or the regulatory authorities in the jurisdiction in which it is established. It must do so in any event no later than the following.
•For an entity which is not a mining exploration entity or an oil and gas exploration entity, two months after the end of the accounting period.
•For an entity which is a mining exploration entity or anoil and gas exploration entity, 75 days after the end of the accounting period

4.3A Following the end of the financial year of an entity (except a mining exploration entity or an oil and gas exploration entity), the entity (in the case of a trust, the responsible entity) must give ASX the information set out in Appendix 4E. A responsible entity must give ASX the information with any necessary adaptation. The information and the accounts upon which it is based must use the same accounting policies. The information must comply with all relevant accounting standards.

4.3D Once an entity is or becomes aware of any circumstances which are likely to materially affect the results or other information contained in the preliminary final report given to ASX under listing rules 4.3 or 4.3A the entity must immediately give ASX an explanation of the circumstances and the effects the circumstances are expected to have on the entity's current or future financial performance or financial position.

4.7.4 If the entity’s corporate governance statement is not included in its annual report, a copy of its corporate governance statement current as at the effective date specified in that statement for the purposes of rule 4.10.3.The documents referred to in rule 4.7.3 and 4.7.4 (if applicable) must be given to ASX at the same time as the entity gives its annual report to ASX under rule 4.7.1 or 4.7.2 (as the case may be). However, an entity need not give ASX any of the above documents if they have already been given to ASX under listing rule 4.5. The entity must tell ASX if this is the case.

4.10.3 Additional information to be included in the annual report by all entities
Either of the following:
•a corporate governance statement that meets the requirements of this rule; or
•the URL of the page on its website where a corporate governance statement that meets the requirements of this rule is located. The corporate governance statement must disclose the extent to which the entity has followed the recommendations set by the ASX Corporate Governance Council during the reporting period. If the entity has not followed a recommendation for any part of the reporting period, its corporate governance statement must separately identify that recommendation and the period during which it was not followed and state its reasons for not following the recommendation and what (if any) alternative governance practices it adopted in lieu of the recommendation during that period.The corporate governance statement must also:
•specify the date at which it is current, which must be the entity’s balance date or a later date specified by the entity; and
•state that it has been approved by the board of the entity (in the case of a trust, the board of the responsible entity of the trust).

12.5 An entity's structure and operations must be appropriate for a listed entity.