Chinese renewable tech kicked off the bourse after 3 years in suspension
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Chinese renewable tech Novarise has been booted off the ASX after passing the three-year suspension threshold.
ASX authorities on Monday rejected the company’s (ASX:NOE) application for a further 3-month extension lodged earlier this month.
Despite not trading since March 2015, Novarise said it was on the cusp of a debt restructure and could still turn its business around.
The company’s technology is used to recycle polypropylene — the plastic used to make dishwasher-safe containers and fishing nets — and turn it into yarn and rope.
It has been operating so long the company even talked about recycling CD cases in its announcement of a new production facility back in 2010.
At that point the company was trading in the ball park of 24c, falling to lows of 8c before it halted trade at 16c.
Novarise pointed the finger at changes in the Chinese government’s policy on importing foreign waste – which went into effect at the end of last year.
As of January, it was continuing to look for solutions.
“The company has established a representative office in Singapore in January 2018 to look into establishing a waste re-processing plant in Indonesia in the second half of 2018 and also to expand its business in Southeast Asia,” it told the market last week.
The company’s two subsidiaries, Fujian Sanhong Renewable Resource Technology and Quanzhou Sanhong Chemical Fiber Co together owe about $260 million in debt to 13 Chinese banks.
As at last week, it said 80 per cent of that debt had been successfully assigned from the relevant lending banks and it was on target to fully refinance by early April.