Animoca Brands Corporation Limited was removed from the official ASX list with effect from Monday, March 9, 2020 despite the company’s detailed case made to the contrary.
Certain issues with Animoca's governance were flagged by the ASX back in December 2019.
The ASX also called into question Animoca's involvement with cryptocurrencies and use of simple agreements for future equity (SAFEs) in its subsidiaries.
The exchange asked Animoca to submit a response detailing why it should not be removed or else face delisting.
Upon receipt of the notice, Animoca Brands set to work on addressing the ASX’s concerns and working on a strategy that would allow the ASX to be comfortable in lifting the company from suspension.
Subsequently, Animoca lodged a 39-page report with the ASX in February. This, however, was not enough as the ASX told Animoca it would be removed on Monday.
Its business as usual
The company confirmed in a statement that its operations will continue on a business-as-usual basis.
The statement said: “It is time for Animoca Brands to focus on building the business and delivering value to shareholders in an environment that is more welcoming to activities that involve virtual asset ownership through blockchain and non-fungible tokens (NFTs).
“These are still early days for true digital ownership delivered through blockchain. While we have seen great results from our NFT pre-sales in our products such as The Sandbox and F1® Delta Time, we believe the best is yet to come.
“So what’s next for Animoca Brands? We believe that being a publicly-traded company on the right exchange is the best option for our business.
“While this carries both cost and responsibility, those are modest compared to the benefits that a public listing provides to shareholders and the company.
“Many of our investors have asked about our plans for liquidity, and we have kept this top of mind.
“It’s for these reasons, among others, that we intend to pursue an initial public offering on another exchange as soon as practicable.
“Owing to the hostility displayed by the ASX toward our blockchain related activities, we have for some time been working towards listing on another exchange, although it would be premature to disclose anything further today.”