Locate Technologies’ ASX Suspension Signals Major Corporate Shift and Tax Uncertainty

Scheme Approval Marks Major Corporate Restructuring

Locate Technologies Limited (ASX, LOC) has reached a significant milestone with the Supreme Court of New South Wales granting approval for its scheme of arrangement. This legal endorsement effectively transfers the parent entity status to Locate Technologies Limited (NZX, LOC), a New Zealand-based company, signaling a strategic corporate restructuring aimed at consolidating the group under a new jurisdiction.

Trading Suspension and Delisting Timeline

Following the court’s approval, Locate Technologies shares were suspended from trading on the ASX as of the close of business on 11 December 2025. This suspension precedes the anticipated delisting from the ASX scheduled for 17 December 2025. Investors holding shares on the ASX will see their holdings transition as the company prepares for its listing on the New Zealand Exchange (NZX), with the first quotation of Locate NZ shares expected shortly after the scheme’s implementation date on 16 December 2025.

Tax Implications and Shareholder Considerations

In parallel with the scheme’s progress, Locate Technologies has received a non-binding draft class ruling from the Australian Taxation Office concerning capital gains tax (CGT) scrip-for-scrip rollover relief. This ruling, while promising, remains provisional until the ATO issues a final determination, expected after the scheme’s implementation. Eligible Australian shareholders should monitor the final ruling closely, as it will clarify the tax treatment of their shareholdings post-restructuring.

Strategic Outlook and Market Impact

Locate Technologies’ suite of AI-driven logistics platforms, including Locate2u, Zoom2u, and Shred2u, positions the company at the forefront of last-mile delivery innovation. This structural shift to a New Zealand parent company could reflect strategic ambitions to leverage different capital markets or regulatory environments. While the immediate impact includes share suspension and delisting on the ASX, the move may unlock new growth avenues and investor bases via the NZX listing.

Next Steps for Investors

Shareholders should prepare for the transition by noting key dates, the record date for entitlements is 15 December 2025, with the scheme implementation following on 16 December. The company has committed to keeping the market informed of any timetable changes. Meanwhile, the final ATO ruling remains a critical piece of the puzzle for Australian investors assessing their tax positions.