The ASX is removing TTC from the list as administrators continue investigating
Health & Biotech
Health & Biotech
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All is not well at Chinese wellness company Traditional Therapy Clinics.
In fact, it looks terminal: today is the last day the stock will appear on the official list, with the ASX to remove it from quotation on Monday December 17.
Stockhead reported last month that Traditional Therapy Clinics (ASX:TTC) had called in the administrators after months of ASX queries, delayed financial accounts and continuous removals and appointments in the board room.
Those administrators, Pitcher Partners’ Daniel Bredenkamp and Bryan Hughes, today told TTC investors that they had received notice from the ASX yesterday that the company would be removed from the official list at the commencement of trading on Monday.
The administrators had been looking to recommend a recapitalisation deed of company arrangement, Mr Hughes said.
That would have involved undertaking further investigations into the company’s affairs “whilst preserving the value of TTC’s listing”.
But that was nixed following the ASX’s decision to delist TTC.
The administrators will now continue its investigation into the company’s business, property, affairs and financial circumstances and provide an updated report at a later date.
“At this point, the administrators consider it likely that the company will be wound up and placed into liquidation,” Mr Hughes said.
The company has been bedevilled by problems of its own making since about September last year, when the ASX began querying whether it was having problems repatriating money from China.
The company couldn’t get its accounts past auditors and therefore couldn’t release half-year accounts.
The company fessed up to the ASX that the problems were around their bank confirmation, a process that proves a company has access to sufficient financial resources to complete a transaction, such as the purchase of goods.
Then it lost two Australian directors, Geoff Ross and Christian Drysdale, “without warning” and their company secretary in the space of two days.
The company said Mr Ross and Mr Drysdale had urged the company’s auditors to “take additional steps to obtain new bank confirmation”, as the original bank confirmation was identified as irregular.
They’d resigned because “authorisation from the company management for the new bank confirmation was not forthcoming”.
Traditional Therapies stock lost 88 per cent of its value since listing in 2015, going into administration with the stock sitting at 5.8c.