Corporate: Gasfields is going to court to avoid delisting by the ASX
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Gasfields (ASX:GFS) was reinstated to the ASX last night — just two days after being delisted — after launching a legal fight in the NSW Supreme Court.
The energy company, which trades as Magnum Gas and Power, has been suspended since March 2018 and was cut following “several concerns” the ASX had about the company.
These had included concerns around its financial condition, failure to lodge reports, failure to engage with the ASX about reinstatement conditions, and dealings with a now delisted company (Ochre Energy) which the ASX believed was a related party.
The ASX also accused them of failing to tell its shareholders about a legal fight with the Botswana Stock Exchange.
Gasfields, through its lawyers, responded to these matters saying its reinstatement plan was on track and promised to submit its financial reports within the next few weeks.
It also denied any wrongdoing in Botswana, or with Ochre Energy.
Gasfields’ letter to the ASX stated it would be inappropriate to be removed until it has had time to implement the re-compliance transaction.
Last night the ASX announced it had agreed to restore Gasfields at least until the next hearing on November 5. It has said the restoration could be extended to judgement day if appropriate but the stock remains suspended.
This morning Gasfields Chairman Nathan Featherby said he was pleased with the ASX’s backdown as it would enable the transaction to proceed and this would provide viable route to re-quotation.
The company is seeking compensation and a declaration that in its delisting it was denied procedural fairness or otherwise failed to be accorded natural justice.
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