The Stock Exchange has told technology company VTL Group that it will be suspended again from trading, if it does not issue its preliminary full-year results by next Tuesday.
VTL's August year results were due on Tuesday. The company said it was unlikely to meet the deadline and
suspension was likely. It sought a waiver from a listing rule that would put its day-to-day trading in jeopardy.
VTL's shares were suspended in August because the NZX did not believe the market had enough information about the company's status after its finance company subsidiary, Nathans, collapsed.
On October 19, the exchange allowed VTL shares to resume trading, but they have sunk from a pre-suspension level of 69c to around 6c.
With its market capital now just $2.3 million, the company argued that a suspension of more than 20 business days would reduce its average market capitalisation to zero under the listing rules.
It said that would mean its day-to-day funding would require shareholder approval. Under the rules, it cannot enter into a transaction which affects the gross value of the company by more than 50 per cent without shareholder approval first.
NZX granted the waiver for its daily operations, but said shareholder approval would still be needed for any asset sales.
- NZPA
