Claude Walker sometimes uses the term "dumpster fire" for certain ASX small-caps.

I posted my valuation of $0/share a couple of days ago... because even after cost cutting there is no trend to positive operaring cash flow, and receipts now falling for 2 Qs.

Essentially, some of the management and investors will put together some $ to buy out other existing shareholders and delist. I'm guessing with the results and management changes, its going to be a proportion of the last SP, because were it to trade again, I would expect to see a further fall. So they'll have to put together a buy-out proposal, with a period of time for current shareholders to respond to. Probably an EGM vote is needed?

Interesting to find out who will be on the team, as the register is quite fragmented. 72% free float, and the biggest insto is FIL Hong Kong with 7.5%.

Just my uninformed perspective.

Disc:Not held IRL or SM

Thanks mikebrisy.

This has been a shitco cash furnace for a long time unfortunately. I held a small parcel for several years hoping it would come good given the order growth but ended up selling out most of it at a more than 50% loss.

Seems like this news will consign the tiny holding I have left to the furance as well.

Disc: Tiny amount held IRL

Delisting doesn't mean there is a buy-out proposal. Quite rare for that to be the case and the last time such a liquidity option occurred as part of a delisting that I can recall was Updater. Companies can just delist as is meaning that anyone who is a shareholder of the company when listed remains a shareholder when it delists and goes private. The problem then becomes that anyone who holds past delisting owns shares in a private company with close to no liquidity options i.e. you can end up very stuck. In this case, the hope probably is that they go private, make their own valuation in line with what they think it should be (probs higher than the listed val) and/or get a "better" private valuation in a subsequent funding round (again higher than the listed val).

Does it require a shareholder vote?

@BkrDznis correct, company can simply delist with no buy-out or plan to re-list anywhere.

LVT is one I have been very sceptical of for a long time ever since reading Glassdoor reviews where more than a handful reference vapourware and fraudulent sales tactics.

https://www.glassdoor.com.au/Reviews/LiveTiles-Reviews-E1390234.htm

It depends on the reason for delisting but under my assumption for LVT's reasoning, I would think they do need and EGM to let shareholders vote. Recent examples include AWN, GID & RAB.

For further information on delisting, see the following link.

https://www.asx.com.au/documents/rules/gn33_removal_of_entities.pdf

Thanks @BkrDzn for explaining that. It's not something I've come across before.

Ugh what a dumpster fire of a company.

Yeah - and a shocking way to treat their shareholders.

Claude Walker has given an interesting tweet today ( https://twitter.com/claudedwalker/status/1554269160771047424 ) highlighting that the two founding directors have paid themselves >$1.8m per year between them over the last two years.

Down 50% today on ending of halt and annoucement of process for delisting.

As I consider my own lessons on this one, one thing that stands our from investor presentations over the years is the spinning of results and vague, promotional language. When I was a shareholder this always made me feel "yuk" and no doubt conditioned my instinct to exit.

Disc: Not held

Managed to get out of my remaining tiny holding today for a 94% loss *spew* Just thankful it was always a tiny position.

I didn't see that from Claude but it doesn't surprise me regarding the directors. IMO it's a big red flag, high management salaries, and one I need to give more weight to in future.

Disc: Not held (any more) in SM or IRL

It is not forbidden to make a market in unlisted shares, its is just not easy as you have to go out of the way to find the other side of your trade, determine fair price and in many instances requires approval from the company so that a trade doesn't mark an outlier price.

This lot runs a platform specifically enable easier trading on unlisted shares/units/assets. https://www.primarymarkets.com/

Thanks. There is a difference to making a market vs trading/transferring unlisted securities as a holder. Can you make a market without a licence to do so, no, can you find a buyer/seller and trade/transfer amongst two entities, yes. Not forbidden to trade unlisted securities, just a hard and opaque process to go through.