Can My Rewards Secure ASX Reinstatement After $3.98M Capital Raise?
My Rewards International has secured conditional approval from the ASX to reinstate its shares, pending a significant capital raise and debt-to-equity conversion. The company faces a detailed checklist before regaining official quotation.
- ASX grants conditional approval for MRI reinstatement
- Planned $3.98 million entitlement offer to shareholders
- Debt conversion of up to $1.9 million into equity
- Compliance with ASX listing rules and working capital requirements
- ASX retains discretion to withhold reinstatement
Conditional ASX Approval
My Rewards International Limited (ASX, MRI), a player in loyalty technology and digital marketing services, has received a cautiously optimistic nod from the Australian Securities Exchange (ASX) regarding the reinstatement of its securities to official quotation. This conditional approval signals a potential return to the trading floor, but only after the company meets a comprehensive set of requirements laid out by the exchange.
Capital Raising and Debt Conversion
Central to the ASX’s conditions is MRI’s plan to raise up to $3.98 million through a partially underwritten entitlement offer, priced at $0.009 per share. This capital injection is designed to shore up the company’s balance sheet and provide working capital to support ongoing operations. Alongside this, MRI intends to convert up to $1.9 million of existing debt into equity, a move that will reduce liabilities and potentially improve financial stability.
Stringent Compliance Requirements
The ASX’s reinstatement conditions are detailed and rigorous. MRI must secure shareholder approval for the debt conversion, complete the entitlement offer under a formal prospectus, and demonstrate sufficient cleared funds. The company is also required to provide updated financial statements, confirm it has at least 12 months of funding post-reinstatement, and ensure no legal or regulatory barriers impede its planned use of funds. Additionally, all outstanding reports and administrative filings must be lodged promptly.
ASX’s Discretion and Timeline
While the ASX’s letter indicates no current reason to withhold reinstatement, it retains absolute discretion to reverse or impose further conditions if new material information arises or if MRI fails to comply fully with listing rules. The company has a three-month window, until early October 2025, to satisfy all conditions or face the prospect of reapplying for reinstatement.
Implications for Investors
For investors, this announcement marks a critical juncture. Reinstatement would restore liquidity and market confidence, but the path is contingent on successful capital raising and regulatory compliance. The company’s ability to meet these milestones will be closely watched, with the potential to reshape MRI’s market standing and operational outlook.
Bottom Line?
MRI’s journey back to the ASX is underway but hinges on swift capital raising and strict compliance.
Questions in the middle?
- Will MRI’s shareholders approve the proposed debt-to-equity conversion?
- Can the company successfully complete the entitlement offer within the ASX’s timeframe?
- What contingencies does MRI have if ASX imposes additional reinstatement conditions?