ASX Suspends AVZ for Non-compliance With Listing Restrictions

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As a result of non-compliance with ASX listing rules, AVZ Minerals has been suspended from the exchange.

The company failed to disclose all material information, leading the market operator to take action and suspend the stock from trading.

AVZ Minerals has been making significant progress in the lithium industry, having recently received a major investment and securing rights to explore a large tenement in the Democratic Republic of Congo.

The ASX suspended the stock of AVZ Minerals due to its failure to disclose material information in compliance with listing rules. Specifically, the market operator took action under listing rule 17.3.1, which requires companies to provide full transparency of all material information.

This decision has left shareholders stuck in the stock, unable to exit their positions or take advantage of any price movements in either direction.

In response to the suspension, AVZ Minerals provided 20 answers to questions from the ASX regarding its disclosure of Manono-related ownership disputes and capital raisings made in 2021.

While this was a step forward for the company, it still needed to comply fully with ASX requirements and has been unable to meet the exacting standards set by Australian securities regulations.

In response to an ASX letter dated February 10, AVZ said, “We didn’t disclose a May 2021 letter from a DRC entity named Dathomir that terminated AVZ’s agreement to purchase a 15 per cent stake in Manono because Dathomir didn’t have valid legal grounds to scupper the deal.”

Following AVZ’s $40 million in July 2021 and $75 million in December 2021 raises, ASX also questioned its cleansing notices.

The notices stated that no information had been excluded from investors concerning the two capital raisings. However, it became apparent that certain material information must be adequately disclosed.

In response to this oversight, shareholders have expressed frustration at the lack of transparency displayed by AVZ Minerals and felt misled regarding their investment decisions.

This news will likely affect investor sentiment towards AVZ as they can only access their shares once they address these compliance issues with ASX.

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