What investors need to know about the suspended groups ANO and ISX

What investors need to know about the suspended groups ANO and ISX

As per the listing rule of Australian Stock Exchange, the companies are placed under suspension from trading mainly due to (1) Violation of any listing rules, (2) if it is in the opinion of ASX etc. In simpler terms, suspension of securities does not allow the Company to trade on exchange for a specified period.

In the below article, we will be having a look at two suspended stocks on ASX: Advance Nanotek and iSignthis.

Advance Nanotek Limited (ASX:ANO)

Advance Nanotek Limited manufactures and distributes advanced material products. According to a release dated 18 May 2020, the stock of ANO will be in a trading halt until further notice.

Business Update for the Market

The Company recently provided a business update to the market players, wherein it outlined the following:

  • The Company continues to produce zinc oxide, and it has received prior order for 80 MT from one of its largest customers in the US for the three months April, May, and June.
  • ANO is sending additional final products such as powder and dispersions to the US and Europe, and it would continue to follow this practice every week.
  • Merck has given two new orders to the Company which doubles their orders for CY20 to $3.2 million.

Do Read: How these stocks are coming in the eye of Investors?

For February 2020, the Company reported profit before tax of more than $1 million on the back of unaudited management accounts. The Company is debt free with more than $1.9 million in the bank. The Company has inked a new agreement with Deveraux Specialties make its non-exclusive distributor for Canada.

Expected Profit for the Year Ahead: For FY20, Advance Nanotek Limited expects net profit before tax to be around $8.4 million, which will be 2.5 times higher as compared to FY19 profit before tax. This forecast is on the back of an expected turnover of $18 million, reflecting a rise of 46 per cent over FY19.

The Company has received communications from its US distributor, which suggests sunscreen manufacturing has restarted at smaller volumes. It expects sales volumes to return to normal, at this stage in the US. To take advantage of the anticipated upturn in market conditions, the Company has established stockpiles in a central US logistics facility.

ANO anticipates extension to the aluminium oxide agreement to 2025 on the back of the agreed 2019 Term Sheet. The Company currently has the capability to expand its aluminium oxide business into new markets and improve supply to its existing key customer with the help of raising capacity, improving quality, and making stock available at an EU based contract logistics facility

The stock of ANO last traded on 15 May 2020 and settled at $4.910 per share, indicating a fall of 4.66 per cent against its previous closing price. The market capitalisation of Advance Nanotek stood at $292.65 million, with ~59.6 million outstanding shares. The stock of ANO has generated returns of 6.51 per cent and -23.40 per cent in the last one month and the last three months, respectively.

iSignthis Ltd (ASX:ISX)

iSignthis Ltd is a financial institution which offers card services and transactional banking in Australia and EU. The securities of the Company are in a trading suspension. ISX updated the market with the decision of not granting interlocutory relief to ISX in its case against the Australian Stock Exchange. The decision was taken by the Federal Court of Australia. 

Recently, the Company had released its operational and financial performance for Q1 FY20, which was the 4th consecutive quarter with positive operating cash flow:

  • The Company stated that Probanx had executed a $4.5 million agreement to develop a Delivery versus Payment Platform for the NSXA, which is to be delivered over 24 months.
  • The Company wrapped up the acquisition of UAB Baltic Banking Service. The total cost included cash worth €75k and ~1395 million ordinary shares.
  • Unaudited revenue for the period amounted to $10.6 million, which was derived from Options/CFDs/FX (11 per cent), Crypto/digital currency (2 per cent), Online gambling (1 per cent), Online video gaming (60 per cent), Travel services (4 per cent) and Other (22 per cent).
  • Operating cash flow for the quarter stood at $1.78 million, and receipts from customers went down by 33 per cent to $10.5 million because of the impacts from COVID-19, together with seasonality in some merchants’ volumes.
  • During the quarter, ISX made an investment of 4.2 million investment in NSX Limited for the stake of 12.96 per cent.
  • As on 31 March 2020, the Client funds held by the Company totalled to more than $100 million.
  • The Company closed the quarter with the cash balance of $17.5 million, which was broadly flat compared to $17.7 million in the prior corresponding period.

ISX, through a release dated 5 March 2020 notified the market that it had been authorised by Central Bank of Cyprus to enable Single Euro Payments Area (or SEPA) immediate payments processing through its ISXPay® payments network for its customers. The Company added that retail customers and business could take advantage of instantaneous p2b, p2p, b2p, and b2b payments, between any points in the EEA.

ISXPay® would introduce immediate and multi-currency payments (same day) competences to AFSL securities brokers by June 2020.

The stock of ISX last traded on 1 October 2019 and settled at $1.070 per share, indicating a rise of 14.439 per cent against its previous closing price.

 

NOTE: $ denotes Australian Dollar, unless stated otherwise

 


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