Shareholders of GeoOp, the unprofitable management app developer, have approved plans to relocate to the ASX from the NZAX and raise funds via an initial public offering that could dilute their holdings by as much as 40 per cent.
GeoOp's shares were suspended from trading on June 29 pending today's special meeting in Auckland and NZX Regulation has now said the suspension will continue until either GeoOp formally delists or cancels its plan to move to the ASX. Shareholders approved three resolutions - for the company to seek an ASX listing; for the board to issue up to 35.29 million shares at a price range of 17-19.5 Australian cents; and a new constitution be adopted. More than 99 per cent of shares voted were in favour.
GeoOp must achieve a post-IPO capitalisation of A$15 million under the ASX listing requirements in order for the listing to proceed. GeoOp went public in 2013, selling shares at $1 apiece in a private offer before its compliance listing on the NZAX Alternative Index. The stock last traded on the NZAX at 22 cents, giving it a market capitalisation of $16.3m. The move to an ASX listing would follow its business, with Australia now accounting for 60 per cent of sales and its management team already across the Tasman.
Other companies on NZX's small-cap indexes - the NZAX and the NXT market - are also contemplating their future as listed entities after the stock market operator said last month that lack of support and liquidity meant it is likely to consolidate its three equity markets onto a single board. It is mulling whether smaller companies could be subject to different requirements as part of a simplified structure that could combine the main NZSX board, the NZAX which was already earmarked to be phased out, and its replacement market for small caps, NXT.
A spokeswoman for Burger Fuel Worldwide, the NZAX-listed burger chain franchisor, said: "at the moment, everything's under review."
