BikeExchange (ASX: $BEX) capital raising and delisting application

BikeExchange Limited (BEX) (ASX: $BEX) is conducting a capital raising of up to $3.17 million through the issuance of new fully paid ordinary shares at an offer price of $0.50 per Share. The capital raising includes a placement of new shares to sophisticated and professional investors and an accelerated non-renounceable pro rata entitlement offer to eligible shareholders. The company also seeks voluntary delisting from the Australian Securities Exchange (ASX) and has applied for in-principle advice for its proposed removal from the official list of ASX.

Executive commentary on capital raising and delisting

The proceeds from the capital raising will be utilized to strengthen the balance sheet, provide working capital for the company's growth strategy, progress technology platform development, and undertake a less than marketable parcel buy-back. The company has received major shareholder support for the entitlement offer. Additionally, the voluntary delisting application is driven by the board's belief that the current trading and liquidity of BEX shares on the ASX do not maintain an orderly and liquid market, impacting the share price and valuation. The board also aims to reduce administrative, compliance, and direct costs associated with the ASX listing, allowing management to focus on value-add matters for the company and its shareholders.

Summary of capital raising, delisting, and buy-back

BikeExchange Limited (BEX) (ASX: $BEX) is raising up to $3.17 million through a capital raising initiative to support its growth strategy and technology platform development. The company also seeks voluntary delisting from the ASX due to concerns regarding trading liquidity, share price impact, valuation, and administrative costs. The proposed delisting will be subject to shareholder approval and will involve a less than marketable parcel buy-back. Shareholders will have the opportunity to sell their shares back to the company at the buy-back price of $0.62 per share. The company aims to reduce administrative costs associated with maintaining a large number of very small holdings and provide a mechanism for minority holders to sell their shares without incurring brokerage costs prior to the proposed delisting.