These stocks have 3 months to prove they should stay in the ASX
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Two companies have until June to prove they are worthy of stay listed on the ASX.
Lachlan Star (ASX:LSA) has three more months to find anyone willing to recapitalise it, and Novarise Renewable Resources (ASX:NOE) has asked for a final three months to conclude the same.
If they do not, the companies will be automatically removed from the ASX under a rule that allows companies to have their shares in suspension for up to three years before being given the boot.
Chile-focused gold miner Lachlan Star has been in administration since February 2015.
Chinese company Novarise on the other hand had promised to make products out of recycled polypropylene at a factory in China.
However, while the Nan’an factory was eventually completed and production began, the company couldn’t out run its ever increasing and very high finance and admin costs.
By March 2015, it was suspended on concerns by it auditors about the 2014 accounts. It said these would be lodged within four weeks.
With a week to go before it’s due to be kicked off the bourse, Novarise has asked for a three month reprieve promising that it’s restructured about 80 per cent of debt due in 2016 and that it plans to set up a new factory — in Indonesia.