Ann: Trading Halt, page-62

without getting too philosophical refer to guidance note 16
https://www.asx.com.au/documents/rules/gn16_trading_halts.pdf

If reference to guidance note 8
https://www.asx.com.au/documents/rules/Guidance_Note_8.pdf

Essentially (and i will marginalise this as best possible) a trading halt is generally requested when there is news/announcement shortly to be announced and they need to ensure continuous disclosure obligations.

"3.1 Once an entity is or becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities, the entity must immediately tell ASX that information.

3.1A Listing rule 3.1 does not apply to particular information while each of the following requirements is satisfied in relation to the information:
3.1A.1 One or more of the following 5 situations applies:
 It would be a breach of a law to disclose the information;
 The information concerns an incomplete proposal or negotiation;
 The information comprises matters of supposition or is insufficiently definite to warrant disclosure;  The information is generated for the internal management purposes of the entity;
or
 The information is a trade secret; and
3.1A.2 The information is confidential and ASX has not formed the view that the information has ceased to be confidential; and
3.1A.3 A reasonable person would not expect the information to be disclosed.


There is 1000's of announcements that get released on the ASX which have trading halts which don't effect the share price. So regardless of whether people think news may or may not effect it, it's better to er on the side of caution.

In general if they are not ready to release and announcement but this MOU has now been formally agreed then it warrants a trading halt. This is to prevent a leak which if known could cause people aware of that info could trade on it freely.

The alternative to this would be they don't suspend trading, there's a leak. The S/P goes up 25% in 2 days and then the ASX issues a please explain and IXR says oh yeh, we signed an MOU a few days back and just planned on releasing an announcement when we felt like it.

I think an MOU regardless of whether binding or not is materially important enough to warrant an announcement. As such, if they weren't able to release in on monday pre-open then there are obliged by ASX listing requirements to request a trading halt until they can release.

What people think is important, what moves the share price are irrelevant. If the company or asx deem it important that's up to them. Better to be safe than sorry with the ASX an be issued please explains or risk insider trading due to a leaky ship.

SF2TH