QEX - QEX Logistics

[nztx]

Ripe for class action against directors I would have thought?

Disc: Not ever held, red flags ever since they listed

Thinking likewise too

Never held any here either

[Oliver Mander]

Just FYI: press release by NZSA today.

QEX Logistics de-listing the worst possible outcome for shareholders

The NZ Shareholders’ Association will vote proxies against the de-listing of QEX Logistics (QEX) in any upcoming vote of shareholders.

NZSA believes that the future of the company is best decided within the transparency provided by a public listing and the accountability provided by the NZX Listing Rules. The company has stated that it wishes to prepare itself for sale once it de-lists. Should the company de-list, NZSA believes there is an increased risk of further loss of value for shareholders.

QEX has suffered a number of adverse events over the last few months, including the theft of stock from a Shanghai warehouse, charges being laid by the Ministry of Primary Industries against subsidiary New Y and QEX Chief Executive Ronnie Xue, the resignation of all other directors and the resignation of its auditor.

The company is currently in a trading suspension as Ronnie Xue is its only remaining director, placing QEX in breach of the minimum director requirement within the NZX Listing Rules.

“We have tried, unsuccessfully, to contact QEX to understand the situation they have found themselves in and to provide more certainty for retail investors” says Oliver Mander, Chief Executive of the NZ Shareholders Association. “In that context, where it is difficult to gain any form of accountability to shareholders over a listed entity, we do not believe that there will be an enhanced opportunity for accountability if the company were to de-list.”

NZSA believes the situation is unprecedented on the NZX, and welcomes the current investigations being undertaken by NZX RegCo and the release of its findings.

“The suspension imposed by NZ RegCo has protected potential investors in QEX. However, the series of events at QEX is unprecedented for a listed entity in New Zealand and may result in further learning that can better protect existing investors in future” says Mander. “NZSA will continue to engage with NZX RegCo to ensure the best possible outcome for QEX shareholders.”

QEX listed in February 2018, facilitating trading in $2.5m of shares that had been raised over the preceding months and incorporating businesses acquired from Ronnie Xue. This was followed by a further $2.5m placement in August 2018 and a Share Purchase Plan raising $1.7m completed in May 2020.

Ronnie Xue continues to own approximately 70% of QEX Logistics.

[Leftfield]

Well done Oliver, NZSA's comments are helpful and appreciated.

[Brain]

Thanks Oliver - very good to see the NZSA involved.

[Oliver Mander]

Thanks for the feedback. it is worth noting that in any vote, the existing shareholding of Ronnie Xue CANNOT be voted. So it comes down to how remaining shareholders feel. You can nominate NZSA as your proxy for QEX by contacting Link Market Services.

[Not The Chosen One]

Fun times in QEX land


To: Market Participants
From: NZX Regulation Limited (NZ RegCo)
Date: 20 May 2021
Subject: QEX Logistics Limited – delisting application
On 22 April 2021, QEX Logistics Limited (QEX) notified the market that it intended to delist from the NZX Main Board.
On 18 February 2021, NZ RegCo placed QEX into suspension as it no longer met the Listing Rule requirements relating to board composition, including the director residency requirement, independent director requirement and audit committee composition requirement. QEX remains in breach of those corporate governance requirements.
In addition, NZ RegCo confirms that a number of investigations into QEX’s compliance with its Listing Rule continuous disclosure obligations remain ongoing. Those investigations relate to disclosures by QEX in relation to the removal of inventory from QEX’s China Customs bonded warehouse, the resignation of QEX’s three independent directors, the breach by New Y Trading Limited (New Y) of its interest cover ratio obligations, and the charges brought by the Ministry for Primary Industries against New Y under the Animal Products Act 1999. NZ RegCo notes that any delisting of QEX will not release QEX from prior obligations under the Listing Rules.
A delisting by QEX will require NZ RegCo approval under the Listing Rules. NZ RegCo may apply conditions to delisting at its discretion.
NZ RegCo has today confirmed to QEX the conditions that it will impose on any delisting of QEX from the NZX Main Board. Those conditions reflect QEX’s current circumstances, and the arrangements that NZ RegCo considers appropriate to support QEX shareholders to assess the delisting proposal, given QEX has no independent directors. NZ RegCo notes that delisting is a significant event for a listed issuer, as shareholders will cease to have the benefit of the protections afforded under the Listing Rules. The conditions:
- QEX must obtain approval of shareholders, who are Non-Affiliated Holders, by way of ordinary resolution to delist from the NZX Main Board – this will exclude Mr Ronnie Xue as current majority shareholder of QEX.
- An independent report will be required as part of the QEX meeting materials – that report will, among other things, (i) assess the sufficiency of the information provided to QEX shareholders to enable them to make to decision on the delisting proposal, (ii) assess the implications of QEX reverting to being a private company, as compared to remaining listed and subject to the Listing Rules, and (iii) opine on the extent of the steps taken by QEX to
appoint an auditor, independent directors, and assess options to remain as a listed company. NZ RegCo will be required to confirm appointment of the independent appraiser, and publication of the report will be subject to confirmation of non-objection by NZ RegCo.
- NZ RegCo will review draft announcements and any proposed communications with shareholders in relation to the proposed delisting.
- NZ RegCo will review QEX's draft Notice of Meeting, to ensure it includes:
o details of the advantages and disadvantages of QEX remaining listed, and of QEX
delisting;
o detailed information regarding QEX’s strategy as a private company;
o details of QEX’s strategy if the delisting is not approved; and
o information about the options available for QEX shareholders, including in relation
to retaining or selling their shares, if the delisting is approved.
Publication of the Notice of Meeting will be subject to confirmation of non-objection by NZ RegCo.
- QEX will be required to lodge an additional $200,000 cash bond, to account for possible enforcement outcomes associated with NZ RegCo’s current investigations.
- QEX will be required to pay any outstanding fees owing to NZX, including the delisting fee and NZ RegCo’s costs relating to delisting application.
Please contact NZ RegCo at issuer@nzregco.com with any queries.
ENDS

[nztx]

https://www.nzx.com/announcements/373224

NZ RegCo advises that QEX Logistics Limited (“QEX”) has not released its Full Year Results for the period ending 31 March 2021 which, under NZX Listing Rule 3.5.1 were due to be released through MAP on or before 31 May 2021.

Pursuant to section 3 of NZX’s Guidance Note on Trading Halts and Suspensions, NZX’s usual practice is that if an Issuer has not issued its full year results within 5 business days of the due date, trading of that Issuer’s securities will be suspended until the Issuer has issued its full year results.

NZ RegCo notes, in the present case, that QEX is currently suspended. NZ RegCo suspended the trading of QEX ordinary securities on 18 February 2021 due to QEX having no independent directors which is a requirement under Listing Rule 2.1.1

[Ggcc]

https://www.nzx.com/announcements/373224

Hopeless. I really feel for shareholders.

[jg8512]

https://www.nzx.com/announcements/373224

so what alternative sanction is NZX imposing?
presumably the rules never contemplated such a scenario, which is an indictment given the various ratbag promoters and outfits NZX has allowed to list over the years

[winner69]

Smiths City still seems to be ‘listed’ ...even though ‘suspended’