Vonex’s reverse listing on the Australian Securities Exchange (ASX) has come undone after the company was removed from official quotation this morning.
Over the past two months, ASX and Vonex have traded words over concerns about Vonex's capital raising under prospectus in December.
Due to these concerns, the Brisbane-headquartered telephony provider is obliged to offer investors a refund on their investments, which totalled $5 million for 111 million new Vonex shares.
Problems began on 26 February when the ASX queried Vonex as to why the $5 million from the prospectus had not been held in a trust fund for investors.
Vonex issued a supplementary prospective on 4 March that confirmed that $725,000 from the prospectus had been used as a transactional account for corporate expenses, including working capital, technology and development, marketing and expenses associated with the reverse takeover.
The supplementary prospective also explained that Vonex obliged to offer investors the chance to withdraw their investment.
Vonex stated it had already received and processed refunds totalling $4.1 million as of 4 April after closing the supplementary prospectus.
On 14 March, ASX asked Vonex why a working capital loan facility for up to $1 million, which was established in September 2015, wasn’t properly disclosed to the ASX during the prospectus.
Vonex director Mark Rowbottam said at the time the loan facility was only verbally agreed to in October, and wasn’t finalised until 29 February, and had not been disclosed to Vonex’s other directors.
On 1 April, Rowbottam – who was responsible for negotiating the loan facility – resigned as a director of Vonex.
The following week, Vonex chief executive Brydie McKee announced she was stepping down as a director "in order to focus on growing the business".
On 12 April, ASX told Vonex that after multiple unsatisfactory responses on the nature of its capital raising, the company would be removed from official quotation.
Vonex spent the majority of 2015 negotiating a reverse listing with publicly listed mining company Aleator Energy. The hosted PBX provider intended to raise the $5 million in capital in order to fund the ongoing development of its multi-platform communications app Oper8tor.
While the reverse listing plan has come undone, investors on share market forum HotCopper were hopeful Vonex would relist via an IPO. The company grew its revenue by 22 percent in the 2015 financial year to $4.6 million.