Ann: AGM Presentation, page-77

The ASX queries of Alexium’s financial accounts for FY2019 seem to have been prompted by the Auditors’ statement of “Material uncertainty related to going concern”. Here, the Auditors drew attention to the fact that Alexium had incurred a net loss of $6,939,521 and had cash outflows from operating and investing activities of $5,479,377 during the year and had debt of $9,000,000 due for repayment on 29 September 2020.

Consequently, the ASX questioned whether Alexium was complying with Listing Rules 12.1 and 12.2.

Level of Operation

Listing Rule 12.1: The level of an entity’s operations must, in ASX's opinion, be sufficient to warrant the continued quotation of the entity’s securities and its continued listing.

Financial Condition

Listing Rule 12.2: An entity's financial condition (including operating results) must, in ASX's opinion, be adequate to warrant the continued quotation of its securities and its continued listing.


These were the ASX’s key questions…

What steps has AJX taken since the release of the Annual Report to obtain an unqualified opinion with regards to its future financial statements?

What steps does AJX intend to take to obtain an unqualified audit opinion with regards to its future financial statements?

Does AJX consider that the financial condition of AJX is sufficient to warrant continued listing on ASX as required under Listing Rule 12.2? In answering this question, please also explain the basis for this conclusion.


And these were Alexium’s key answers…

A capital management strategy is currently being executed to strengthen the statement of financial position of the Group before 31 December 2019.

The Directors are of the opinion that sufficient additional funding can be secured in the coming period…

Consequently, in my opinion, the Board has felt forced by the ASX to strengthen the Company’s financial position prior to the end of this quarter if they wanted to avoid the risk of the Company being delisted. Therefore, additional funding needed to be secured by December 31. The Board determined that it didn’t have the option of waiting another three months.