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

Follow us on Google News:
More on:
 Why are BWX (ASX:BWX) shares on trading halt today?
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 non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK