I think I understand ASX’s position on this. They have clear and unambiguous rules that apply to every company, rather than on a case-by-case basis. Here, PRL has failed to take the predictable steps required to remain compliant with the listing rules when they pivoted to hydrogen (and away from traditional minerals exploration). Imo the board just didn’t bother to approach ASX early (years ago) to commence the steps necessary to switch their main business activity/sector, and left it until ASX spotted the failing last year after Total pulled out (this imo is despite PRL claiming in its announcement it had “jointly formed a view on recompliance” with ASX). I think the truth is they were pulled up on the breach by ASX Listings Compliance rather than it being some sort of collaborative recognition & agreement.
The ASX process to recomply I looked into and outlined in a post on another thread here:
The rest of that thread might also be useful reading.
PRL has given NO substantive explanation or update on where this process is now at (well at least to my satisfaction anyway). The steps they need to complete are very clear, yet they do not appear to be making any progress at all. That makes me wonder why. I also think being suspended & noncompliant is perversely quite useful to DF for the time being, as they don’t have to do much while leaving us locked in and in the dark for up to two years (before they must act or be delisted).
Like @PositiveAAA said above, I too would like to believe there is some clever shareholder-friendly tactic or reason, but their performance to date has been the complete opposite as far as I can tell. I also think ASX is rightly annoyed at the way in which PRL (imo) strung shareholders along about the positive partnership progress with Total, which became patently obvious was not the case once Total walked away. Imo the relationship was dead and had been off track for a while, which directly contradicts PRL’s comments right back to DF at the 2022 AGM, then heading into Christmas, and even upon release of the half year accounts. Add to this both the former chairman’s enormously lucrative share sells, and the auditor making a special mention in its report of the extremely high remuneration packages that directors were receiving.
None of that will have been lost on the listings adviser when reviewing things at the point Total walked. I think ASX decided that to protect shareholders from any further (imo) fairy stories they had to demand that all of the recompliance steps be completed prior to requotation. They can’t trade until they are compliant, just like every other company.
PRL blaming government and/or ASX won’t wash with me. If DF can’t get this project across the line promptly then he needs to walk now too, along with the absurdly paid Kylah Morrison.
PRL Price at posting:
4.1¢ Sentiment: None Disclosure: Held
(20min delay)