6 ASX stocks at risk of delisting in the next 12 months

A couple of weeks ago, a list of ASX stocks at risk of delisting was released on the market announcements platforms. The ASX has the right to remove stocks for breaking listing rules (such as failing to lodge the report) or if it is appropriate for some other reason. But it was rare to see the bourse release a concise list of stocks at list of being delisted, specifically for failing to lodge periodic reports.

Although it automatically suspends companies for failing to lodge on time and publishes a ‘name and shame’ list thereafter, it typically only includes companies that missed the deadline and may not provide a deadline before the company is to be removed. The list released earlier in July was different, with specific dates when companies would be removed as well as what reports are overdue. We’ve looked over the list, and highlight six of the more notable companies at risk of the axe.

6 ASX stocks at risk of delisting in the next 12 months

Catalano Seafood (ASX:CAT)

Catalano’s deadline is September 29, 2024, exactly 12 months to the day its FY23 accounts were due. Since then, the company has also failed to lodge activities and cashflow reports for reach quarter, not to mention its annual FY23 report and 1HY24 report too.

The chances of it meeting the deadline is remote because the West Australian seafood product distributor has been bought by Avior Capital, which plans to take it off the ASX. The company entered administration last year with debts to unsecured creditors of over $3m.

Candy Club (ASX:CLB)

Candy Club does not have any accounts overdue, but is set to be delisted on October 2024 unless it completes a proposed reverse takeover deal. One counting prominent businessman James Baillieu as its boss, the company once operated a candy subscription service for consumers and businesses.

Suspended since October 2022, the company unveiled a plan in May 2024 to reverse takeover with Scalare Partners which is a venture capital company focused on the tech sector. The deal’s conditions include a 56:1 share consolidation and existing shareholders owning just 2%, with Scalare shareholders owning 68%. When this deal was unveiled, the companies admitted there were concerns from the ASX about its business model and revenues, with the bourse believing it was unsuitable to be listed. The companies are betting that the ASX will like Scalare’s FY24 reports and change its mind, allowing it to list.

K-Tig (ASX:KTG)

K-Tig didn’t lodge its report for 1HY24 on Leap Day (February 29, 2024) and has until February 28 next year to lodge. This company specialises in a welding technology for additive manufacturing, that it claims can reduce multi-hour welds to just minutes. Despite being suspended and in administration, the company told shareholders two weeks ago that the company was fulfilling customer orders. It has applied to ASIC for a relief provision enabling the deferral of financial reporting obligations for 6-24 months. This may not save it from being delisted.

Phoslock (ASX:PET)

Phoslock has its FY24 report and accounts overdue, and (as the company uses the calendar year), it has until the end of February 2025 to lodge. The company was founded in 2002 with a technology to clean up phosphorus-polluted water. It secured several projects around the world, many of which were in China. But the pandemic changed all that. The initial onset of the pandemic led to the halting of projects. And historical fraud, bribery, corruption and illegality was uncovered by a KPMG investigation. Shares kept trading until mid-2023, and the board announced intention to wind up the company and sell its assets. As of late April, ‘the new board is still determining the best way forward for the company’.

Revasum (ASX:RVS) 

Revasum also uses a calendar year and failed to submit its final report for CY23. It has until March 1, 2025, not February 28th for some reason. It makes polishing and grinding tools for semiconductor manufacturers but has struggled with cash flow problems for much of its listed life. Revasum has not given an update since mid-March where it gave a hint that it had no future in its current form. It said it was ‘work[ing] through the process of identifying strategic and financing options to secure its future’.

Roots (ASX:ROO)

Roots is a peculiar company, with agricultural technologies including its Root Zone Temperature Optimisation Technology. This company failed to lodge its CY23 reports, as well as its first quarter cash flow and activities reports and this is due on February 28, 2025. Its last update was in mid-May when the company obtained a 60 day stay-of-proceedings order in Israel to shield the company from debtors, allowing it to restructure its financial obligations and operations.

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