IT services provider Trimantium GrowthOps delists from the ASX
Australian IT services provider Trimantium GrowthOps has announced that it will be delisting from the ASX after 2 years of trading publically. GrowthOps revealed that the Australian Securities Exchange accepted its application to be delisted from its official list. The company now seeks the shareholders’ approval which will be finalised on November 30th, at the company’s Annual General Meeting.
GrowthOps has posted $43.7 million in loss for the FY2020, an improvement of 30% on $65 million loss faced in 2019. Additionally, the share price of GrowthOps has plummeted by 90% since July 2019, rolling down from $0.53 to $0.051 per share.
Why is Trimantium GrowthOps delisting from the ASX
The delisting decision has been made due to various factors like the value of its share price, share price volatility, limited trading of securities, costs and administration of being listed, future funding alternatives and inability to raise capital through issuing shares. The company is also exploring ways to let smaller shareholders exit the register.
The company said delisting from the ASX provides it an great opportunity to continue to accelerate its cost improvement programs along with securing better alternative funding sources to facilitate as well as assist in achieving its growth objectives. The delisting process is expected to complete by 31st December 2020, subject to shareholder approval.
More on IT services provider GrowthOps’s statement
The board of GrowthOps believes that its current, and historical, share price doesn’t properly reflect the underlying value of the company, when compared with alike businesses. Its share price is presently trading at 5.3c. When the company listed in March 2018, its shares were selling at $1.22.
Additionally, the board also believes that the concentration and lack of liquidity currently is unlikely to enhance and improve in the foreseeable future, keeping in mind the illiquidity of the security increasing share price volatility.
The board says that the excess volatility makes it excessively costly and ineffective for the Company to raise the needed capital. The company also said it is not really benefiting from the advantages of listing despite paying the costs associated with it (which the company said are between $350,000-$550,000 per annum.
Elimination these costs will assist the operating cash requirements of the company along with being able to conserve cash flow as well as direct resources, particularly in a post-pandemic environment, the company said.
Image Courtesy: Arrow photo created by wirestock – www.freepik.com
For more updates and latest tech news, keep reading iTMunch