ELECTROMETALS BOWS OUT AFTER 25 YEARS

Written on the 28 October 2014 by Nick Nichols

ELECTROMETALS BOWS OUT AFTER 25 YEARS

A 25-YEAR run as a listed company will come for an end in a little over a month for the financially troubled Electrometals Technologies (ASX: EMM).

The Gold Coast mining technology firm, which has been operating under a deed of company arrangement (DOCA) since February, has obtained overwhelming shareholder approval to delist from the Australian Securities Exchange on December 4.

The last day of trading for Electrometals shares is November 28.

The move caps off a bumpy quarter century as a listed company for Electrometals, whose key business is a metals extraction system for the mining sector.

Matters came to a head earlier this year when it was revealed the company was struggling due to an unpaid debt totalling $1.12 million owed by a party in Iran.

Electrometals, which now has a token headquarters at Mudgeeraba, also has just secured another six-week extension to its DOCA until December 9.

This is despite court action by two creditors to set aside the DOCA so that the company may be liquidated.

That matter was heard on September 22 in the Supreme Court of Queensland, but a decision has been reserved.

Court records show that a Supreme Court action against the company was filed on August 11 by two parties, the Victorian-registered Traivelog Pty Ltd and NSW-registered piping systems company George Fischer Pty Ltd.

Electrometals secured a DOCA on April 2 following a second creditors’ meeting that voted in favour of unsecured creditors receiving 6c in the dollar for their debts.  Unsecured creditors are owed $815,000.

The DOCA has been extended four times since then.

In June, Electrometals scored a court victory in the US where it defended a lawsuit for breach of contract in Missouri.

Electrometals has struggled to return a profit over the past 25 years, although a creditors’ report revealed that calendar 2013 produced stronger than normal revenue of $4.3 million.

Electrometals’ most recent earnings result, in the half year to June, delivered a $409,000 loss and half-year sales of $1.75 million, up 58 per cent from a year earlier.


Author: Nick Nichols

Latest News

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter