Warrego Energy Limited provides the following information
to investors in relation to the Company’s shares being suspended from Official Quotation by the Australian Securities Exchange on Thursday 17 September 2020.
Background
WGO undertook a capital raising on 25 May 2020 (by way of a placement) (Placement), which was split across two tranches. A cleansing notice in respect of Tranche 1 shares was issued on 29 May 2020.
The issue of the tranche 2 shares (which comprised 27,619,579 shares, and included shares issued to Directors under the Placement and shares that were not part of the Placement) (Tranche 2 Shares)
was subject to shareholder approval. Shareholder approval was sought and received at a duly convened EGM on 16 July 2020. The Tranche 2 Shares were issued on 22 July 2020.
On Friday, 30 July 2020, Warrego realised that no cleansing notice had been announced with respect to the Tranche 2 Shares (an administrative error), and proceeded to prepare and lodge a cleansing prospectus on Monday 3 August 2020 (Cleansing Prospectus) to cleanse the further trading in Tranche 2 Shares on the ASX.
The Cleansing Prospectus did not include any new information that had not already been disclosed to the market (other than the failure to lodge the cleansing notice). At all times between the issue of the
Tranche 2 Shares and the Cleansing Prospectus, to Warrego’s knowledge there was no price sensitive information which had been withheld from the market and the market was otherwise fully informed with respect to Warrego and its operations. The Cleansing Prospectus had the effect of cleansing all the uncleansed Tranche 2 Shares such that from the time of lodging the Cleansing Prospectus (3 August 2020), all Warrego shares on issue (including the Tranche 2 Shares) were cleansed and able to be properly traded.
During the period between the issue of the Tranche 2 Shares (on 22 July 2020) and the issue of the Cleansing Prospectus (on 3 August 2020) approximately 7 million shares (out of approximately 832
million shares on issue) were sold by nine Tranche 2 Shareholders.
Current Status At the same time as taking steps to issue a Cleansing Prospectus, Warrego sought and has now received court orders to absolve from liability those few Tranche 2 Shareholders who sold their shares in the absence of a cleansing notice. Warrego’s shares were suspended from trading by the ASX until such orders were made by the court (despite Warrego’s shares being freely tradeable from the lodgement of the Cleansing Prospectus). Accordingly, Warrego requested the immediate restoration of the Company’s shares to Official Quotation which was granted by the ASX earlier today. Warrego confirms that its shares will recommence normal trading from 21 September 2020.
