Danakali Limited (Danakali) has announced that it has elected to seek to transition its primary securities exchange listing to the National Stock Exchange of Australia (NSX) and to delist from ASX as part of this process.
The Danakali board has made a proactive decision to provide shareholders with the opportunity to trade their shares after an extended period of suspension on the ASX and to move the company to a more appropriate exchange.
The suspension followed the sale of the company’s interest in the Colluli Potash Project in Eritrea. Danakali shareholders received $162 million in the form of dividends and capital returns from the proceeds from the sale of its interest in Colluli. The company retained sufficient funds to satisfy potential obligations arising from the sale of the project and to take Danakali in a fresh direction with a new portfolio of exciting assets.
The company has received in-principle advice from ASX that it would likely remove the company from the Official List of ASX, subject to satisfaction of the conditions.
Central to the decision was the ASX Listing Rules requirement that companies seeking to re-comply with the ASX Listing Rules pursuant to the 'assets test' must have commitments to spend at least half of their cash reserves on their stated objectives within two years of re-listing.
Danakali Chairman, Seamus Cornelius, said the strict application of the ASX Listing Rules at this time, would not be in shareholders’ interests to needlessly spend money on exploration purely to facilitate re-listing.