ASX Suspension Continues as SIV Capital Struggles to Meet Listing Rules
SIV Capital Limited reported a modest positive net cash flow for Q3 FY25 and holds over $8 million in cash, yet its ASX securities remain suspended pending compliance with listing rules.
- Q3 FY25 net cash from operating activities positive $27,000
- Nine-month net cash from operating activities positive $295,000 including $500,000 insurance claim
- Cash and interest-bearing deposits total $8.044 million at quarter end
- Payments to related parties include directors’ fees and legal costs
- ASX suspension since December 2024 continues due to inadequate operations
Quarterly Cash Flow Highlights
SIV Capital Limited has reported a positive net cash flow from operating activities of $27,000 for the third quarter of fiscal year 2025. For the nine months ending 31 March 2025, net cash from operating activities was $295,000, a figure bolstered by a one-off insurance claim settlement of $500,000 received in the first quarter. The company’s cash position remains robust with $8.044 million in cash and interest-bearing deposits at the end of the quarter.
Corporate and Related Party Payments
During the quarter, payments to related parties amounted to $50,000, primarily covering directors’ fees and legal bills paid to solicitors associated with a director. Operational costs and administration expenses continue to be managed carefully as the company navigates its current challenges.
Acquisition Strategy and Tax Considerations
SIV Capital is actively evaluating acquisition prospects with a strategic focus on maintaining ownership continuity to preserve valuable tax losses. The company is targeting opportunities with a proven profitable history and sustainable growth potential, aiming to effectively utilise franking credits. This cautious approach underscores the company’s intent to strengthen its financial position and operational viability.
ASX Suspension Status
Since 18 December 2024, SIV Capital’s securities have been suspended from quotation on the ASX. The exchange determined that the company’s operations were insufficient to justify continued listing, citing breaches of Listing Rule 12.1. The suspension remains in place until the ASX is satisfied that SIV Capital complies with all relevant listing rules, including operational adequacy and disclosure obligations. The company has committed to ongoing periodic disclosures to keep the market informed during this suspension period.
Outlook and Market Implications
While the positive cash flow and strong cash reserves provide a degree of financial stability, the ongoing ASX suspension casts a shadow over SIV Capital’s near-term market prospects. The company’s ability to secure and execute accretive acquisitions that meet regulatory and tax criteria will be critical to its path back to compliance and reinstatement. Investors will be watching closely for updates on remedial actions and strategic developments.
Bottom Line?
SIV Capital’s cash resilience offers a foundation, but the ASX suspension remains the pivotal hurdle to watch.
Questions in the middle?
- What specific steps is SIV Capital taking to address ASX’s concerns and achieve reinstatement?
- Which acquisition targets are under consideration, and how might they impact the company’s financial and operational profile?
- How sustainable is the current positive cash flow without the insurance claim inflow?
