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eChoice to delist from ASX

eChoice to delist from ASX

Mortgage aggregator eChoice has announced its intention to seek shareholder approval to delist from the ASX due to low trading levels and capital restraints.

In a statement to shareholders, eChoice said the delisting would be in the best interests of the company due to low-level trading of its securities on the ASX, the inability to raise capital, the costs of maintaining the listing and the significant future benefits of allowing eChoice to develop in an unlisted environment.

“Should shareholders approve the delisting, the company will become an unlisted public company and shareholders on the register at the date of delisting will retain their shares in the company, but those shares will only be capable of being traded in an off-market private transaction in accordance with the company’s constitution,” the statement said.

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The shares of eChoice are scheduled to be suspended from trading on 9 August 2016, subject to approval from shareholders and the ASX, with the company’s delisting to occur on 16 August.

According to the statement, the board of eChoice has sought to determine whether there are any methods that may assist in the creation of a liquid market to enable any shareholders that wish to sell their shares during the 30-day trading window before delisting to do so.

“The board determined that the most effective method was likely to be one contained in a verbal non-binding expression of interest provided to the company by existing major shareholders in the company and entities associated with directors of the company, Tony Wales, Gregory Pynt, Tim Burton-Taylor and Peter Andronicos, forming a consortium with a verbal non-binding expression of interest,” eChoice said.

At the close of trading yesterday, eChoice’s share price was 0.006 cents.

This latest announcement from the aggregator comes after it signed an agreement with Columbus Capital in October last year for the sale of the company’s $125 million of loan assets, managed by its non-core business Firstfolio Capital.

[Related: eChoice extends $58.4m senior debt facility]

eChoice to delist from ASX
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