Done some more research on this, for those interested. Bit complex to grasp, but appears to relate to new guidance on continuous disclosure. The following is a simplified form from Clayton Utz:
"On the surface, therefore, it appears to be a suitable avenue when a trading halt would be too short. However, as the new Guidance Note concedes, the problem with a suspension is that it can handicap the company's fundraising activities:
"30. Entities should be aware that one of the conditions of their eligibility:
to offer securities without a disclosure document or product disclosure statement under a 'low-doc' rights issue (sections 708AA or 1012DAA of the Corporations Act) or under a share or interest purchase plan (ASIC Class Order 09/425); or
to rely on the 'cleansing notice' provisions in relation to a secondary sale of securities issued without a disclosure document or product disclosure statement under a placement (sections 708A(5) or 1012DA(5) of the Corporations Act),
is that their securities have not been suspended for more than a total of 5 days during the shorter of the period during which the class of securities was quoted, and the 12 month period before the relevant offer or issue."
In other words, if the securities have been suspended for more than 5 days in 12 months, securities and rights issues become considerably more complicated and expensive (although ASIC may be prepared to grant relief if it believes that the suspension has not prevented the market's being fully informed).
It should also be noted that suspensions of more than two trading days prevent a company's offering shares or options to employees without a prospectus (under Class Order 03/184).
ASX comments that, "apart from this one issue, a voluntary suspension should not be perceived as a less attractive option for managing continuous disclosure obligations than a trading halt."
Comment
The new Guidance Note is welcome, because it provides companies and their advisers with precedents to use when approaching ASX for a trading halt. Given the short timeframe within which continuous disclosure decisions have to be made, this is a very useful tool.
At the same time, however, the Note also highlights the shortcomings of trading halts and suspensions as a continuous disclosure management tool.
The inability to trade in securities for a day (let alone an extended period) can create significant issues for all investors in those securities. This is why issuers avoid doing so unless there is no alternative.
Another issue is the qualitative difference between trading halts and voluntary suspensions. Despite ASX's comment that suspensions should not be seen as the "less attractive" of the two, the reality is that the adverse effects of a suspension will continue to dog their use."
(20min delay)