ADG has four days to do a deal until the ASX switches off life support
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ADG Global Supply has had three years to find a willing buyer, but with four days to go until the ASX boots them from the bourse, they’re yet to conclude a deal.
ADG (ASX:ADG) was an industrial products supplier to the mining sector until it called in the administrators in January 2015.
The company went under when its major client, iron ore miner African Minerals went bust in 2014, owing ADG $US1.5 million.
ADG went into a trading suspension in December 2014, and while it says it’s fielded “a number” of deals over the last two years, they will be delisted on December 8 if they can’t get something over the line.
The ASX gives companies three years of suspension to sort out their affairs, before pulling the plug.
“Over the past six months, two competing proposals have been gaining momentum and significant attention has been directed towards them, particularly in the last month,” chairman John Cahill said.
But time is against them. The ADG board will need to finalise a deal, get shareholder approvals, recapitalise and relist.
Mr Cahill told Stockhead he would ask the ASX for an extension, once he got a deal bedded down.
Might the board sell the company into a hot tech sector like blockchain?
“There was something we looked at in the technology area but that’s not necessarily what we are primarily looking at, at the moment,” Mr Cahill said.