Global Data Centre Group

ASX:GDC

Global Data Centre Group

ASX:GDC
TradeAdd trade order Follow Unfollow Set Price Alert
$1.425 (+0.7%)
Last close price
#552
Rank
1
Held by
10
Followers
TradeAdd trade order Follow Unfollow Set Price Alert
Reports (3) My Report Forum Investors
Forum Topics GDC GDC #RTFM

Pinned straw:
Rocketrod
Added a month ago

One thing I've learned from fellow Straw members is that you need to do the work to find the hidden gems rather than just throwing the veritable dart at the board.

This includes RTFM or (Read The Fu#$ing Manual) among other forms of necessary research.

So last week, on a whim, I bought shares in Global Data Centre (GDC) after they announced a return of capital to shareholders of $1 per share, but they fell by $2 a share...or something like that. I'd been following them for a while, so seized the chance after the big fall in price.

So after buying said shares, I then took a look at their annual report. I know, you're meant to do it the other way round.

I was puzzled when I read in their 2024 Annual Report under "significant change in state of affairs", there was mention that the ASX had given GDC 6 months from 20th May to comply with ASX Rule 12.1 or they would be suspended from the ASX.

I have no idea what ASX Rule 12.1 is but it was enough for me to immediately sell.

Yesterday, the 6 month period of grace came around and the ASX has suspended GDC until further notice (see link).

https://investorpa.com/announcement-pdf/20241120/69688.pdf

For all I know it might be a minor speeding fine on GDC and they'll return to the ASX ready to take off like a rocket but I won't be buying again anytime soon.

I am very grateful for this community and the advice to do the work, even if I am a slow learner

Bullet possibly dodged.
Duffshot38
Added 4 weeks ago

My understanding - The suspension is related to GDC selling the businesses it had positions in or owned outright and now not actually having anything of significance left other than its share in Airtrunk through an investment in a fund. It is also being sold so there is nothing sinister as such but ASX rule 12.1 gets in the way. They are about to return the capital and wind up so I sold prior to the suspension just to make things easier.

10
Bear77
Added 4 weeks ago

https://www.asx.com.au/documents/rules/Chapter12.pdf

482e000eaf68be7f87beb1049d7ccc4a901e5f.png

12.1 and 12.3 are anti-"cashbox" rules that are there to stop cashboxes being ASX-listed, in other words, to remain listed, entities must be an operating company that does something other than charge themselves fees for their staff and Board as well as collect some interest on their cash.

When a company sells, loses or otherwise disposes of their main asset(s) and their remaining asset(s) is/are mostly cash, rule 12.3 kicks in.

Basically, the ASX gave the company 6 months to distribute their cash to their shareholders and wind up the company, OR to instead buy another asset and put their efforts into that - so either have an operating business or else wind up, and this company failed to achieve that within that six months, so they have been suspended and will remain suspended while they remain non-compliant with the listing rules. I think you were wise to exit before the suspension @Duffshot38 - it was after all clearly communicated by both the ASX and the company.

9