Graphex Group's Transition: Key Updates on Trading Shares

Latest Trading Developments for Graphex Group

Graphex Group Limited (HKSE: 6128) has recently announced significant updates regarding its trading status on stock exchanges. While the company's American Depositary Shares (ADSs) faced delisting on the NYSE American, the ordinary shares continue to remain a part of The Stock Exchange of Hong Kong Limited. This transition opens the way for the company to navigate its challenges in the current market landscape.

Details of the NYSE Delisting

On a recent date, the NYSE American issued a delisting letter regarding the trading of Graphex Group's ADSs under the symbol "GRFX." The delisting was prompted by the company's inability to comply with specific filing requirements set by the NYSE. Specifically, Graphex Group did not submit its Form 20-F for the year ending December 31, 2023, on time, leading to a significant change in the trading structure for its ADSs.

Impact on Trading and Liquidity

As a result of the delisting, the ADSs are set to trade on the OTC Expert Market. It's important to note that this market is far more limited compared to the NYSE, which may lead to decreased liquidity and a potential decline in trading prices for current and future holders of the ADSs. Despite these challenges, Graphex's ordinary shares remain unaffected on the HKSE, ensuring a pathway for continued trading.

What’s Next for Graphex Group?

The company is actively addressing its audit requirements, which have contributed to the delayed filing situation. Graphex has engaged SFAI MALAYSIA PLT as its new independent accounting firm to complete the necessary audits for its consolidated financial statements compliant with U.S. GAAP. Although the audit is still pending, the company expects to finalize these reports shortly.

Ongoing Commitment to Compliance

It's worth mentioning that Graphex Group is fully compliant with its listing obligations on the HKSE and remains committed to transparent financial reporting. The financial statements prepared according to International Financial Reporting Standards (IFRS) have been duly filed with regulatory bodies, ensuring that investors have access to up-to-date financial information.

Future Outlook

The company is also weighing the option to appeal the NYSE's delisting decision. While the outcome of any potential appeal remains uncertain, Graphex Group is determined to explore all avenues to restore its trading status on the NYSE. Meanwhile, the company’s operations continue seamlessly with no impacts reported from the Rights Offering or any business activities.

Graphex’s Position in the Market

Graphex Group is a key player in the renewable energy sector, focusing on technologies that transform natural and synthetic graphite into vital components for electric vehicles and lithium-ion batteries. With a robust production strategy, the company plans to significantly ramp up its output in the coming years, positioning itself as a top supplier for environmentally sustainable energy solutions.

Frequently Asked Questions

What led to the delisting of Graphex Group’s ADSs on the NYSE?

The delisting occurred due to the company's failure to timely file its Form 20-F with the Securities and Exchange Commission, which is part of compliance requirements.

Are Graphex Group’s ordinary shares still tradable?

Yes, the ordinary shares of Graphex Group continue to trade on The Stock Exchange of Hong Kong Limited without any impact from the recent delisting of its ADSs.

What is the OTC Expert Market, and how does it affect trading?

The OTC Expert Market is a less liquid trading environment than the NYSE, potentially resulting in lower trading prices and limited market activity for holders of Graphex’s ADSs.

What actions is Graphex Group taking regarding the delisting?

The company is evaluating the possibility of appealing the NYSE's decision, and it is simultaneously working with its audit firm to complete the necessary financial audits.

How is Graphex Group ensuring compliance with its financial reporting?

Graphex Group adheres to the listing obligations on the HKSE, including timely filing of audits prepared under IFRS by a registered CPA firm, ensuring transparency and compliance.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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