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Summary
- GrowthOps will be suspended from trading after today’s closing and would be delisted from tomorrow.
- Poor liquidity of the stock leading to artificially depressed price was one of the reasons for the delisting.
- The share price tanked by massive 31.3% to A$0.046 (as at 1:29 PM AEDT).
On 30 December 2020, GrowthOps Limited (ASX:TGO) announced the delisting of its securities from the Australian Securities Exchange (ASX). The official quotation of the company’s securities will be suspended from trading after today’s closing.
In October, the ASX accepted the company’s application to delist. The removal of the securities from the official list of the ASX is scheduled for tomorrow.
Stock Performance
After the delisting announcement, GrowthOps’ share price was cut by almost 1/3 on the ASX. The stock tanked by massive 31.3% to A$0.046 (as at 1:29 PM AEDT). Today’s selling was witnessed on the back of the highest one-day volume for the month, i.e. above 400k.
With today’s fall, the last three months’ return has turned negative 13.2%. The YTD return is also negative 48.8%.
Annual General Meeting
On 11 December 2020, the company released an official statement regarding the name change and the delisting approval. A special resolution regarding the matter was carried at the recent Annual General Meeting (AGM) held on 30 November 2020.
Surprisingly, the company received a majority voting of 97% in favour of the resolution regarding the delisting process. A total of 85.2 million votes were cast in favour of the delisting as opposed to 2.41 million votes being against it.
Also, the company changed its name from Trimantium GrowthOps Limited to GrowthOps Limited while retaining the same ASX ticker.
Read More: Latam Applied to ASX for Its Official Delisting
Management’s view on the Delisting
The board views the delisting process to be in the best interest of the shareholders of the company. After the delisting, the board believes the company's underlying performance and financial stability would improve. The improved operations would enable the company to deliver enhanced shareholders’ returns and drive the future business growth.
GrowthOps’ Non-Executive Chairman, Scott Tanner, stood firm on the company’s mission to serve the clients and their customers' needs, apart from creating the long-term value for the shareholders. In fact, he considered the delisting to be “a milestone” for the company in the quest to become a more agile and robust business.
Reason for Delisting
Mr Scott Tanner acknowledged the overwhelming support of the shareholders to delist the company. He was not happy with the company's stock price performance and believed that it did not reflect the company's underlying value.
He attributed the poor performance of the stock price to the lack of liquidity which caused spreads while trading and high concentration of shareholding in a few hands. This led to the manipulation in the share price.
The artificial suppression (according to Mr Tanner) didn’t reap any benefits of being a listed company, while the company incurred all the costs of being listed.
