BELLAMY'S SHARES SUSPENDED FROM TRADING
Written on the 14 December 2016
AT Bellamy's request, the ASX has suspended trading of the embattled company's shares this morning leaving its investors, yet again, in the lurch.
The voluntary suspension means that investors are unable to sell their stock in the company until the suspension is over. This follows Bellamy's shares freefall after the release of its 2 December guidance, opening at $12.09 per share and closing at $6.85 before a trading halt was placed on its stock.
Around $500 million value was wiped off the baby formula manufacturer's market cap after the update, which detailed a "temporary volume dislocation" in its China sales channels because of regulatory issues.
Under the ASX Listing Rules, a company can only request a voluntary suspension if it cannot meet its continuous disclosure obligations to the ASX or if it is not in a position to make an announcement after a trading halt.
In this case, Bellamy's requested the suspension "to manage its continuous disclosure obligations whilst it continues with a review in order to finalise an updated announcement of the impact of trading conditions on the Company's expected financial results."
The voluntary suspension will run until the earlier of the commencement of normal trading on 21 December or the release of a company announcement.