NSX stuck in limbo after bungled cap raise 'comedy'
On a quest to become Australia’s ‘alternative’ stock exchange, the NSX has stumbled before its turnaround campaign has even begun.
Suspended from trading after botching its own capital raise, the National Stock Exchange (NSX) has been stuck negotiating with the regulators for weeks as it tries to restore its tarnished reputation.
Itself listed on the ASX, the NSX was forced to issue a mea culpa and voluntarily enter a trading halt last month after realising it had breached its compliance obligations under the Corporations Act.
Capital Brief has confirmed the breach was a result of over allocating shares to investors above and beyond what they had purchased after some shareholders did not take up their entitlement offer.
“The Company has become aware that there are matters of technical non-compliance with the Corporations Act and the ASX Listings Rules in respect of the issue of shares,” the NSX said in a statement to the market on 27 June, noting it included major shareholder ISX Financial, the Cyprus-based financial services institution controlled by John Karantzis.
