VANCOUVER (miningweekly.com) – Careworn alluvial diamond producer Rockwell Diamonds has decided to delist from the TSX, and instead list on the NEX, a third-tier trading forum for listed companies that have fallen below TSX Venture's ongoing listing standards.
The move follows the company’s South African subsidiaries entering the country’s Business Rescue programme, which allows for the orderly restructuring of companies in financial distress.
The company, which will maintain its dual JSE-listing, expects the concurrent delisting and relisting to take place on or about August 31.
Rockwell had in April decided to delist from the TSX, considering its current market capitalisation, and to initiate the application process for listing on the TSX-V. However, because of the status of its South Africa subsidiaries, it has decided rather to list on the NEX.
Trading in the company’s equities have been halted on both the TSX and the JSE, pending the outcome of the hearing on the merits of the liquidation application against the company's three subsidiaries, which has now been postponed to November 3, in view of the business rescue proceedings.
Rockwell Diamonds has also delayed its annual general meeting from August 23 to October 2.
The company, which has three South African subsidiaries – Rockwell Resources, HC van Wyk Diamonds and Saxendrift Mine – has to file its business rescue plan by September 30 for its subsidiaries, which are currently being managed under the South African business rescue provisions. Rockwell has advised that the business rescue practitioners continue to work towards delivering a business rescue plan on or before September 30.
However, the company remains in full compliance with its securities regulatory requirements, it affirmed on Monday.