VMob’s move to the NZX Main Board has been delayed as the growing technology firm seeks to meet the criteria outlined amidst its proposed transition.
As revealed by the company, the NZX has decided to approve VMob’s listing on the NZX Main Board subject to VMob satisfying the following conditions precedent to listing.
They include the Auckland-based firm successfully completing the private placement to raise $5 million, as announced to the market earlier this month, and to also attain a market capitalisation of at least $40 million, by no later than 31 March 2016.
NZX has the discretion under the NZX Main Board Listing Rules to consider applications for listing on the Main Board for issuers with an anticipated market capitalisation of less than $50 million.
As a result, NZX has stated that it is prepared to exercise this discretion in respect of VMob but it is also concerned with the level of VMob's current market capitalisation (being $21,518,000 at close of trading on 16 September 2015), as a company applying for a new listing on the NZX Main Board, particularly given the target constituents anticipated for listing on the NXT Market.
Consequently, once NZX is satisfied that these conditions have been met, and if VMob’s Board also decides having reflected on other alternatives that it wishes to proceed, NZX would communicate its approval to VMob of its Listing on the NZX Main Board.
As previously announced to shareholders, VMob is in the process of undertaking a series of presentations in support of a private placement to raise up to $5 million through the issue of up to 14,705,882 ordinary shares at an issue price of $0.34 per share, with the offer originally closing on September 28, 2015.
This closing date was based on the potential application of the NZX Main Board listing rules however, and now that a potential move to the NZX Main Board is likely to be delayed VMob does not face the same time pressure.
Accordingly, there is now no closing date for the offer and VMob will inform the market on progress with the offer at the appropriate time.