Not an "if" moment. Top line has been cratering for a year now and they stopped reporting ARR and similar metrics this FY so far as it looked too bad. June 22 qtr, ~$16m cash recs and ~$60m for FY, last qtr report, under $10m/qtr. Cost Cutting is barely staving off the revenue/cash rec declines at this stage and very unclear how durable the remaining customer base is. I highly doubt MyNetZero will changes this. Business death spiral risk here imo. LVT also have a history incurring one off costs so seeing will believing on how true that is this time.

They also have $10m in debt, drawing the last $4m on the last possible day late Sept 22, in which principal payments start in April 2023. Cash on hand was $9.6m so they have zero runway on a net debt basis. Means the pressure is on to not just wash face but find decent cashflow to cover that.

It appears they also haven't paid contingent liabilities for prior acquisitions as per the FY22 report. The 4Cs since don't appear to have commented on a resolution since either or no line item suggested it was paid.

If this stock doesn't end up a real zero in VA then I'll.... make no promises to do anything silly like eat a hat or run down the bourke st mall naked. I will just be still surprised that they didn't take the bid from BTH.

Do you mind sharing the lesson you learned?

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

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

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

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.