ASX censure of Lion One Metals Limited

Lion One Metals Limited (ASX: $LLO) has been formally censured by ASX for breaching Listing Rule 7.1. The breach occurred when the company issued equity securities in excess of its capacity without the approval of holders of its ordinary securities. This breach led to the company's securities being suspended from quotation by ASX on 14 February 2024.

Executive Commentary on Censure

The Company proceeded with the issue despite being informed by ASX that it would breach Listing Rule 7.1 and that its securities would be suspended from quotation. The Company's responses to ASX's queries revealed that it had likely breached Listing Rule 7.1 with respect to several capital raisings since its commencement of quotation on ASX in 2013. The Company's acceptance of the breach with respect to the 14 February 2024 capital raising, and its inability to 'reverse course' due to contractual obligations, led to the formal censure by ASX.

Summary of ASX Censure and Outlook

The formal censure by ASX highlights Lion One Metals' breach of Listing Rule 7.1, indicating a preparedness to breach the Listing Rules where expedient. The company's apparent inadvertence to the requirements of Listing Rule 7.1 over a considerable period of time has led to this serious breach. The company's failure to provide a response to ASX's opportunity for submissions and comments further emphasizes the gravity of the situation. Looking ahead, Lion One Metals needs to demonstrate a commitment to compliance with the Listing Rules and rebuild trust with the regulatory authorities and investors.