Down 72% in 2022, Livetiles shares are now delisting from the ASX, here’s why

A man packs up a box of belongings at his desk as he prepares to leave the office.

A man packs up a box of belongings at his desk as he prepares to leave the office.

It’s been a day of red ink for ASX shares so far this Tuesday. Breaking with a five-day winning streak so far today, the All Ords is currently down by 0.41%. But it’s been dramatically worse for the Livetiles Ltd (ASX: LVT) share price.

Livetiles shares have plunged in value today. The ASX tech share is presently down by a painful 52.54% at just 2.8 cents per share at the time of writing. We do not have to look too far to see why ASX investors are abandoning this company.

Before today, Livetiles shares had actually been in a trading halt since Thursday last week. Before that, the company’s shares had been under increasing pressure following a disappointing quarterly update delivered on 25 July.

Livetiles did report a 17% increase in operating revenues against FY2021. However, its cash receipts for the three months ending 30 June came to $12.9 million, a year-on-year decline of 11%.

Upon the release of this update, Livetiles shares fell by more than 30%. As of today, the company is now down by close to 70% since 22 July. It’s also down by 72% over 2022 thus far.

Following the release of this update, on Thursday 28 July the company requested a trading halt “pending it releasing an announcement”. Well, we now know what this announcement is.

Livetiles shares are leaving the ASX

This morning, the company revealed it is “voluntarily delisting” from the ASX boards.

Here’s why Livetiles stated it is abandoning its public listing:

The Delisting is considered by the Company’s Board (Board) to be in the best interests of the Company for a number of reasons, including underperformance of the trading price of the Company’s shares, relatively low levels of trading liquidity and a number of flow on consequences…

These factors, as well as the costs and administrative burden of remaining listed on ASX, outweigh the benefits associated with remaining listed.

The company also declared that “the trading price of the Company’s shares in recent years implies a valuation that has been (and remains) consistently and materially lower than the valuations of unlisted companies of a comparable nature and stage to LiveTiles”.

It also notes that “LiveTiles is well funded and has no intention to raise equity capital in the near term”. But any future capital raising will be easier as a private company.

Livetiles will hold a general meeting on 5 September. This will allow shareholders to vote to approve this delisting. If that goes ahead as planned, Livetiles shares will be suspended from the ASX on 6 October and delisted the following day.

The post Down 72% in 2022, Livetiles shares are now delisting from the ASX, here’s why appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Pwf3LgF

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s