As per recent ASX announcement, securities of LandMark White (ASX: LMW) have been suspended from official quotation, pursuant to ASX Listing Rule 17.2, pending the release of companyâs announcement regarding the financial impact of recently reported data breach incident.
It is to be noted that the shares of LMW came out of trading halt on 18th Feb 2019, that was imposed on 14th February 2019, following the data breach incident that came to light.
An unknown third party hacked into LMWâs data base and posted the data on a dark web forum on or about 11.57pm GMT, 31 January 2019. It is to be noted that LMW gathers data from its clients to provide them an independent property valuation. The company has confirmed that about 137,500 unique valuation data was compromised.
LMW shares closed -10.6% on Monday, 18th February 2019.
As per ASX listing rule 17.1, the company's shares trading on the ASX trading platform could be halted for maximum two days (except capital raising circumstances) upon receiving a trading halt request from the company. LMW sent a trading halt request to the ASX exchange on 14th February 2019.
LMW has now requested for voluntary trade suspension as per the guidelines laid down in ASX Listing rule 17.2, under which the ASX can approve trading suspension if it is satisfied that the company is in genuine financial difficulties, and continued trading in its securities is likely to be materially prejudicial to its ability to complete a transaction critical to its continued economic viability.
According to the company, the data breach incident qualifies it to request for trading suspension of its securities on ASX exchange. The data breach incident has resulted in LMW being suspended from receiving work from a significant number of its clients which is impacting the company's revenues, profitability, and cash flows. At this point, the LMW is unable to determine when the client relationship will be restored and hence when LMW will be capable to evaluate the financial impact of the Incident.
Further, the continued public commentary does not allow for an informed market for trading in LMW securities.
LMW expects that it would be able to provide the market with accurate information relating to the financial impact of the Incident and hence a forecast for FY2019, within the next two to four weeks and lift the suspension at that time.
The company had earlier guided for FY19 revenues to be S55.0M vs. FY 18 revenues of $43.3M , EBITDA to be $5.3M ( Post one-off acquisition cost of $5.8M) vs. FY2018 EBITDA of $6.6M and NPAT to be $2.8M ( Normalised $3.3M) vs. FY18 NPAT of $4.1M and expects to deliver EPS of Circa 3.6 Cents (Normalised Circa 4.3 Cents) vs. FY18 EPS of 5.44 cents
The shares of LMW will be listed under "Suspended state " on the ASX trading platform, the market participants will not be able to place or amend orders, nor will they be able to trade in the securities of LMW till the suspension is lifted.
Trading in the shares of LMW will resume only post the pending information is submitted by the company.
The last traded price of LMW is recorded as A$0.380 on 18 February 2019.
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