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E&P Financial Group Limited (ASX:EP1)

ALERT: Price-sensitive ASX Announcement for EP1
Current share price for EP1 : $0.515 0.105 (25.61%)+
Announcement
Release
24 Sep 2024 10:27AM
Price at Release
$0.410
Full Release
download
Summary
E&P Financial Group Limited has announced its intention to delist from the ASX, citing unsatisfactory share price performance, poor trading liquidity, and high costs of being listed. The company aims to proceed with an Equal Access Buy-Back at a premium price and fund it through a conditional placement of Convertible Notes and a short-term debt facility. The delisting is subject to shareholder approval at an Extraordinary General Meeting on 24 October 2024, with the final trading day expected to be 9 December 2024 if approved. Future capital raising is anticipated post-delisting.
Key Points
  • EP1 Board concluded that benefits of being listed on ASX are outweighed by potential benefits in an unlisted environment
  • Rationale includes negative impact on share price due to regulatory proceedings, poor trading liquidity, no prospects of index inclusion, high listing costs, and no immediate need for capital
  • EP1 has applied to ASX for delisting and released a Notice of Meeting for an EGM on 24 October 2024
  • Delisting subject to shareholder approval with a 75% special resolution
  • Final trading day on ASX expected to be 9 December 2024 if approved
  • EP1 proposes an Equal Access Buy-Back at $0.52 per share, an 18% premium to the recent average price
  • Buy-Back funding involves a conditional placement of Convertible Notes and a short-term debt facility
  • Convertible Notes to be issued at $0.52 per share with 8% interest, converting to shares on 1 May 2025 or change of control event
  • EP1 has binding commitments from wholesale investors and EP1 executives for the Convertible Notes
  • Future capital raising post-delisting expected to be in the form of an entitlement offer
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.