i think the post i made is not correct. i will phone the ASX...

i think the post i made is not correct. i will phone the ASX tomorrow



From: ASX
Sent: Thursday, May 12, 2016 5:17 PM
Subject: RE: CONSULTATION PAPER 12 MAY 2016

Hi DX. We’re happy to clarify.

No – we look at the combined company.

1. No – it is relevant but unusual. Most backdoor transactions involve raising cash.

1. No – it would still have the opportunity to satisfy the admission tests. It’s worth noting that ASX does not list ‘cash boxes’. Unrelated to this consultation, companies with a high proportion of cash must comply with a ‘commitments’ test about how they intend to use the funds.

Regards,





www.asx.com.au
P Please consider the environment before printing this email




Sent: Thursday, 12 May 2016 3:44 PM
To: ASX
Subject: CONSULTATION PAPER 12 MAY 2016

Dear ASX

I spoke to you earlier today. I have now read the whole paper.

Just for my clarity a very basic question:

1. In respect to back-door listings, the “requirements” listed in the paper obviously only apply to the entity being vended into the pre-existing ASX company. Is this correct?

1. In other words, if an ASX shell company has $10 million in net cash (net assets), this has no relevance in relation to the requirements? Is this correct?

1. For example, an ASX shell has $10M in net cash and a vendor company has no history of profit and no net assets. Therefore, the vendor cannot do a backdoor listing or reverse takeover. Is this correct?

Thank you