Funtastic moves to de-list from the ASX, its shares are crushed

Gareth Cattermole/Getty Images

Homewares and toys distributor Funtastic is moving to de-list the company from the ASX, citing costs and low liquidity of its shares.

A short time ago, its shares were down 40% to $0.009.

The company, which distributes Cabbage Patch Kids, Angry Birds and Star Wars, says one of the key reasons leaving the ASX is the low level of liquidity of its shares.

Monthly trading volumes over the last six months have been consistently less than 2% of the total shares on issue.

“This low liquidity has created significant share price volatility,” the company says.

Removal from the official list is expected to improve the company’s ability to raise capital and may have a positive effect on its ability to restructure its debt.

And, the company says, the cost of remaining listed outweigh any benefits.

“Given the current financial position of the company, the directors do not intend to implement a formal share buy-back, sale facility or any other arrangement which would enable its shareholders to dispose of their shares prior to de-listing other than via on-market trading,” the company said in a statement.

“If shareholders approve the company’s removal from the official list, shareholders will be able to continue to trade their shares with a willing counterparty on-market on ASX up to the date of the Company’s removal from the official list.”

Funtastic, which is in the middle of a restructuring including cutting wages after being hit by a downturn in retailing, will in May hold a shareholder meeting to vote on a de-listing.

The company posted a $23.85 million net loss in 2016 on a 14% fall in revenue to $90.87 million.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.