At the risk of further stating the bleeding obvious...Here is...

At the risk of further stating the bleeding obvious...

Here is the statement from ASX on the suspension of trading:



This is a bit of a horrible run-on sentence, but we can break it into pieces.

The first part says trading has been suspended due to non-compliance with Listing Rule 12.2. What's Listing Rule 12.2?


So the Rule seems to say that ASX has to be of the opinion that the listing entity's financial condition is adequate. The note indicates that this criteria will take into account "balance sheet, relative size of liabilities to assets and access to funds" (emphasis mine).

What might have happened for the ASX to have come to the opinion that the financial condition of AP was not "adequate"? We don't have to guess because the 2023 Annual Financial Report just came out and the note from ASX sites the report. What we do have to guess at is what it was in the report that concerned the ASX. IMO (and the opinion of others) it was probably this statement under "Going Concern":


The report then lists a number of future events.

There is no discussion of the perceived likelihood or otherwise of those events or mention of whether the list is conjunctive or disjunctive, or how some events may impact on others.

The ASSUMPTION is that this statement as to the uncertainty of the consolidated entity to continue as a going concern is what has lead to the ASX being of the opinion AP's financial condition is not adequate. However, this assumption is somewhat supported by ASX's reference to that portion of the report, discussed below.

Note this statement in the 2023 Report is not materially different from the statement in the 2022 report:



Or the 2021 report:




That AP has negative income and needs to raise capital from year to year is not a new development. Nor does it appear exceptional for a company in its development phase. Opinions will obviously differ on whether anything has actually changed and whether the change has been for the better or worse.

ASX has give a clue as to where to next in the final part of the sentence:

"pending compliance with Listing Rule 12.2 following AKP’s expectation that the auditor’sreport for the year ended 31 December 2023 may include a modification or disclaimer of opinion in respect ofAKP's ability to continue as a going concern."

The first part says in effect "Once AP is in compliance with 12.2 (i.e. we believe the financial position is adequate) then the suspension will be lifted."

The second part is interesting. The second part suggests ASX has been in discussion with AP prior to making this statement and ASX anticipates there is going to be a modification of the going concern section of the report or a "disclaimer of opinion" inserted, AND once that happens compliance will follow.