Breach Against AXL Was Cleared When Circulating Resolution Received A Green Signal

  • Jan 04, 2019 AEDT
  • Team Kalkine
Breach Against AXL Was Cleared When Circulating Resolution Received A Green Signal

Axsesstoday Limited (ASX: AXL), a company from the diversified financial sector which provides finance products in the small and medium-size enterprise, announced the update regarding the notice of circulating resolution update from Simple Corporate Bondholders on 4 January 2019. The company initially announced the Circulating Resolution on 4 December 2018. Today, on 4 January 2019, the company has come up with an update where the Circulating Resolution receives a green signal.

The clearance of the Circulating Resolution led to the waiver of the compliance with the maximum agreed debt to receivables ratio of 85% on 31 December 2018 as per the terms and condition of the simple corporate bond. The testing of the above data depends on the company’s statutory financial accounts for the period which will take around two months to get finalized and will get published after February. However, the company believes that there could have been a situation of breach of the agreement in case the Circulating Resolution could not clear by 2 January 2019 due to delay in the voting instruction.  

The breach got remedied with the clearance of the Circulating Resolution where it was made clear that the company was unaware of any non-compliance with its obligations under the terms and condition of the simple corporate bond.

The official listing date of AXL on ASX is 21 December 2016 where the company’s performance was 35.42%. The previous one-year performance of the company was 3.50%. However, the last six months of the company has come across a series of negative performances.

As per the reissued annual report of FY2018 which ended on 30 June 2018, the company made a net profit of $3,045,908, where the company declared a basic EPS of 5.6 cents. The balance sheet of the Axsesstoday Limited shows that the company has a net asset base of $66,171,810 where it can manage its long-term obligations. However, it might face challenges during the working capital requirement and in clearing its short-term debts. It is so because the company’s total current liabilities of $145,357,253 is ahead of its total current asset of $128,084,485. The debt to equity ratio is 4.41 which indicates that the company has taken support from external entities in the form of debt.  The total shareholder’s equity is worth $66,171,810.

By the end of the FY2018, there was an increase in the cash and cash equivalent as compared to the previous financial year where the primary source of revenue was in the form of the issue of shares, securitization notes and through the borrowings. The net cash and cash equivalent to the company were $7,450,119.

At present, the trading of AXL shares on ASX is in suspended status. The shares traded last on 11 September 2018 where the closing price of the share was A$1.625.


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