Geneva shifting to USX
Geneva Finance is preparing to delist from the NZX main board and instead feature on the Unlisted Securities Exchange (USX) after shareholders voted in favour of the move.
The company’s final day of trading on the NZX will be July 15 and its ordinary shares will be halted and suspended at close of business that day.
Subject to meeting final standard delisting conditions, Geneva’s ordinary shares will cease to be quoted by the NZX and it will delist from close of business on July 17. The business expects to begin share trading on the USX from July 18.
The changes come after a special meeting was held by the company on July 5 to allow shareholders to decide on two resolutions, which were supported by Geneva’s board of directors.
The first, to delist from the NZX main board, was supported by 57 per cent of votes and opposed by 43 per cent.
A second resolution to shift to the USX, subject to the first matter being approved, returned votes of 89.2 per cent in favour and 10.8 per cent against.
Chairman’s view
Robin King, Geneva’s chairman, told the meeting ahead of the poll that the proposals aimed to improve the operating performance of the company.
Reasons cited for the plans put forward were infrequent trading and low liquidity of Geneva’s shares, reducing compliance and governance costs, more time to focus on core business activities, and the USX being a proven alternative trading platform.
“Our shares have experienced infrequent trading with very low volumes on the NZX main board,” explained King.
“This lack of liquidity means that, in the board’s opinion, maintaining our listing on the NZX offers little advantage to our shareholders.
“The board believes that this scenario is unlikely to change in the foreseeable future given the current shareholder structure and market conditions.”
He continued that shifting to the USX was expected to lead to lower compliance and governance costs for the company, as the market’s obligations “are less onerous than those under the NZX listing rules”.
“We are not the first and likely will not be the last company to move from the NZX to the USX,” added King.
“The USX will offer our shareholders an alternative trading platform. While it is less well-known than the NZX, it is a public, transparent, and centralised facility that provides a cost-effective share trading platform.
“Shareholders will still have the opportunity to trade their shares, albeit in a different market environment.”
He stated Geneva intends to retain its three independent directors and all current board members. It will also release quarterly financial information to shareholders through the USX market announcement platform.
“All of the company’s independent directors believe that delisting from the NZX main board and listing on the USX is in the best interests of Geneva Finance Limited and its shareholders.
“This strategic move will help us streamline operations, reduce costs, and focus more on growing our core business.”
