Why are BWX (ASX:BWX) shares on trading halt today?

More on:

Image Source: © Juliasudnitskaya | Megapixl.com

Highlights: 

  • BWX was supposed to begin trading on ASX today, followed by the release of its audited FY22 results today. 
  • However, the company has further delayed the release of the results. 

Beauty and wellness company BWX Limited (ASX:BWX) shared some significant updates related to its revenue recognition in FY21 and FY22. The stock has stopped trading on ASX in August due to some discrepancies over its FY21 and FY22 revenue recognition. BWX was expected to begin trading on ASX on 28 November 2022 onwards. 

However, the company announced today that it would delay the release of its audited FY22 financial results. Thus, the stock continues to remain at a trading halt today (28 November 2022). 

Shares of BWX have traded last at AU$0.630 apiece as of 26 August 2022. 

Business updates shared by BWX: 

Initially, BWX had announced that it would release the audited version of the full-year financial statements for FY22 ended on 30 June 2022, today (28 November 2022). Therefore, the company said that it had finalised some significant areas of its financial statements, including the revenue recognition issues for FY21 and FY22 and the intangible assets.

However, BWX is now involved with some strategic investors to procure additional debt funding. It is likely to enable the company to restructure its plan, address its rundown of inventory and continue the sale of its non-core assets on time.  

As a result, it will take time for the company to evaluate the offers received as the process continues. Thus, BWX is unable to prepare its complete FY22 financial statements, and it is unable to release them as of now. 

Furthermore, BWX added that its principal bank lender remains supportive towards the company. Therefore, BWX’s board has determined to further delay the release of its FY22 audited financial statements.

On the other hand, BWX also mentioned that its Chief Financial Officer (CFO), Ms Efee Peell, has resigned today, followed by an extended period of leave due to health issues. Peell’s resignation is effective from today itself as she focuses on her recovery now.

Meanwhile, BWX has appointed Birol Akdogan as the interim Chief Financial Officer of the company. However, the company is in search of a permanent CFO who will replace Peell’s position. Akdogan’s appointment as the interim CFO is effective today.



 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and