The proposal is expected to be put forward for shareholder approval at an extraordinary general meeting on 24 October 2024 and requires 75 per cent of votes to be cast in favour of the delisting.
In an ASX statement, it said: “The EP1 board has concluded that the benefits of being listed on the ASX are materially outweighed by the potential benefits of delivering the next phase of growth in an unlisted environment.”
It particularly highlighted a “sustained negative impact on the EP1 share price as a result of regulatory proceedings and class action litigation. Notwithstanding the resolution of these issues, the lack of support for the equity market remains”.
It was announced last week that Dixon Advisory, which collapsed in 2022, will be subject to a public inquiry by the Senate economics references committee.
Poor trading liquidity in shares also makes it challenging for new investors to join the register and for existing shareholders to realise value.
There are numerous numbers that the company says it is seeking to delist:
- The EP1 trading price does not reflect the company’s underlying value
- Limited trading volumes and liquidity
- Cost savings
- No significant current requirement for capital in the ordinary course while any future capital raising would be highly dilutive
- Strategic and corporate opportunities
- Employees
Should the resolution be approved, the final trading day for E&P shares is expected to be 9 December.
