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Suspension from official quotation?

Discussion in 'ASX Stock Chat' started by AussieBoy, Apr 15, 2011.

  1. AussieBoy

    AussieBoy

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    Hi, I was just curious to know what does it mean if a company is suspended from official quotation (e.g. AVQ)?

    Thanks
     
  2. skc

    skc Goldmember

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    It means that investors are kept in suspense... :D

    Seriously, it just means the stock is not trading for an indefinite period of time. Usually stocks go into a trading halt first but a hlat has a time limit (3 days I think). If things take longer to sort out then it is suspended. These can happen for a number of reasons, but the more common ones include captial raising, takeover, resource estimates/upgrades, default of banking convenants, discovery of accounting irregularities...etc etc.
     
  3. Country Lad

    Country Lad Off into the sunset

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    If it asks to be suspended (see Listing rule 17.2*)
    If in the opinion of ASX: (see Listing rule 17:3*)
    It breaks a listing rule.
    It is necessary to "prevent a disorderly or uninformed market"

    ASX's rules require the suspension.
    It is appropriate for some other reason
    In the event of a compulsory acquisition following a takeover bid (see Listing Rule 17.4*)
    In the event of a compulsory acquisition under Part 6A.2 of the Corporations Act (see Listing Rule 17.4A*)
    If an entity fails to lodge certain documents (see Listing Rule 17.5*)
    If it fails to pay annual listing fees (see Listing Rule 17.6*)

    In the case of AVQ the company asked for a trading halt to:

    ....finalise negotiations in respect incomplete proposals regarding of the Company’s business activities and the subsequent release of an announcement.

    which could mean anything, and then the company asked for a voluntary suspension because they could not make the announcement within the 3 days.

    Axiom requests the voluntary suspension to enable it to finalise negotiations and conclude
    agreements in respect of its current reported business activities, the nature of which are
    particularly sensitive, and to provide details to the market before those negotiations and
    agreements are concluded may seriously impact on the commercial outcomes for Axiom.


    Cheers
    CL
     
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