ASX calls timeout on squabbling duo BPH Energy and MEC Resources
The ASX has suspended both MEC Resources and BPH Energy from trading.
ASX spokesman Matthew Gibbs told Stockhead that the bourse imposed the suspensions because of inconsistencies with ASX guidance on announcements for release.
“More detail will be available when the companies resume trading,” he said.
On Friday morning the ASX issued separate announcements saying BPH (ASX:BPH) and MEC (ASX:MMR) would be suspended from official quotation pursuant to listing rule 17.3.
Under ASX listing rules, the bourse can suspend a company from trading for a number of reasons including if it is “unable or unwilling to comply with, or breaks, a listing rule” or “to prevent a disorderly or uninformed market”, “the ASX rules require the suspension” or “it is appropriate for some other reason”.
The suspensions follow a 50 per cent drop in BPH’s share price on Thursday. MEC’s shares were also down yesterday – slipping 5 per cent to 1.9c by the closing bell.
The pair are involved in a legal disagreement over unpaid debts.
Earlier in April BPH served energy investor MEC with a writ issued in the District Court of Western Australia. The $5 million MEC has an 8.3 per cent stake in $1 million BPH.
The head of BPH Energy, David Breeze, is the former managing director of MEC.
MEC has previously accused Mr Breeze of taking another punt at toppling the board.
However, Mr Breeze told Stockhead in January he was not behind the push to have the current directors removed.