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Highlights
88 Energy Ltd initiates a Small Holding Share Sale Facility targeting minor shareholders
The initiative covers holders with parcels valued below the ASX-defined threshold
Shareholders must opt out by submitting a retention form by the stated deadline
88 Energy Ltd (ASX:88E), (AIM:88E), (OTC:EEENF), an entity listed on the All Ordinaries, operates within the oil and gas exploration sector. The company has introduced a Small Holding Share Sale Facility, designed to manage a substantial number of minor shareholdings that fall below the threshold set by the ASX for marketable parcels.
This initiative aims to simplify shareholder registry maintenance and streamline administrative tasks. In accordance with the ASX Listing Rules, a "less than marketable parcel" is defined as a shareholding valued under a specific monetary figure, based on the closing price on a designated reference date. Under the newly launched facility, eligible shareholders will be provided with the opportunity to have their holdings bought out directly by the company, without the involvement of brokers or incurring brokerage fees.
Administrative Efficiency Behind the Move
According to the announcement, the share sale facility primarily targets holdings below the minimum threshold defined by ASX regulations. Maintaining these smaller parcels typically results in elevated administration and registry costs. By facilitating this share sale, 88 Energy Ltd intends to reduce these operational overheads and improve administrative efficiency.
The company has acknowledged the importance of its entire shareholder base, while simultaneously emphasizing the need to manage cost implications arising from managing a high volume of micro-holdings. This step reflects a wider trend among listed entities aiming to optimise registry management and operational efficiency.
Opt-Out Mechanism Available for Shareholders
The company has clarified that shareholders who wish to retain their current holdings have the option to opt out of the share sale. To remain unaffected by the facility, shareholders must complete and return a Notice of Retention Form by the deadline specified. This ensures that the facility remains voluntary and transparent, allowing stakeholders control over the status of their holdings.
Communication regarding the facility has been directed to applicable shareholders. The company has also encouraged prompt action from those intending to retain their shares to ensure compliance with the timeline.
Scope of the Share Sale Facility
The implementation of this facility encompasses a notable portion of the shareholder base, although the cumulative volume of shares involved represents a small fraction of the total issued capital. The move does not impact shareholders above the defined parcel threshold.
