E&P Financial Group (ASX:EP1) Delisting Announcement

E&P Financial Group (ASX:EP1) has applied to ASX for the removal of EP1 from the Official List of ASX. The Board has cited reasons such as sustained negative impact on the share price, poor trading liquidity, and high direct costs associated with being listed. The proposed pathway includes the Delisting and an Equal Access Buy-Back, subject to shareholder approval at an EGM on 24th October 2024.

Executive Commentary on Delisting and Buy-Back

The decision to apply for delisting from ASX and the proposed Equal Access Buy-Back is a strategic move to address the challenges faced by E&P Financial Group. The Board believes that the benefits of operating in an unlisted environment outweigh the drawbacks of being listed on ASX. The Equal Access Buy-Back aims to provide liquidity to shareholders at a premium to recent share prices, aligning the shareholder register to an unlisted environment. The proposed capital raising post-Delisting is intended to refinance the short-term Debt Facility, providing potential opportunities for shareholders to participate in the future.

Summary of Delisting and Future Plans

E&P Financial Group (ASX:EP1) has proposed the Delisting from ASX, citing reasons such as sustained negative impact on share price, poor trading liquidity, and high direct costs. The company aims to conduct an Equal Access Buy-Back at a premium to recent share prices, providing liquidity to shareholders. The Buy-Back will be funded through a Conditional Placement and access to a short-term debt facility. Additionally, the company intends to explore a potential future capital raising post-Delisting to repay the short-term Debt Facility. The proposed future capital raising may provide an opportunity for shareholders to participate and refinance the remaining debt. The indicative timetable suggests that if the Resolutions are passed, EP1 anticipates its shares to be removed from the Official List on 12th December 2024, subject to shareholder approval and potential changes by the Company or ASX.