The S&P/ASX 200 Index (ASX: XJO) has opened the week on a very positive note. At the time of writing, the flagship ASX index is up a healthy 1.54% to 6,775 points. Clearly, investors are trying to put the carnage of last Friday behind them, at least for now.
But one ASX company hasn’t turned up to the party. Bellevue Gold Ltd (ASX: BGL) shares are in a trading halt today, frozen on ice at 72 cents a share.
What’s going on?
Unfortunately for investors, it’s not exactly good news today. The announcement of the trading halt was delivered just before market open this morning. In its release, Bellevue told us that:
The Company was required to request a halt in the trading of its securities today after becoming aware of a historic administrative oversight to the appointment of its previous auditor, Grant Thornton that backdates to 2018…
The non-compliance with Chapter 2M relates to a historical administrative oversight in relation to the appointment of the Company’s previous auditor that backdates to 2018. Although the Board does not consider that the oversight described in this announcement is a price sensitive matter, it had no alternative but to request a trading halt in light of legal advice regarding the potential need to seek orders under section 1322 of the Act in respect of the share issues the subject of the cleansing notice.
Bellevue went on to state that “the company should have sought approval” for the Grant Thornton appointment. But due to the oversight, it inadvertently did not seek this approval. Bellevue has also stated that it will “shortly apply” to the Supreme Court of Western Australia for orders declaring that the appointment was not invalid and does not constitute a breach of the Corporations Act.
Bellevue Gold has also told the markets that the Australian Securities and Investments Commission (ASIC) and the ASX have both been informed of the oversight. They have also been informed of the Supreme Court application.
About the Bellevue Gold share price
Bellevue Gold is one of the ASX’s mid-tier gold miners. At the current (suspended) Bellevue share price of 72 cents, the company has a market capitalisation of $608.66 million. Bellevue shares have had a fantastic run in recent years, but have given up a lot of that success over the past few months.
Back in March 2016 (five years ago), the Bellevue share price was trading at just 3 cents. But by November last year, Bellevue shares had climbed to a high of $1.49 (a return close to 5,000%). But since November, the Bellevue Gold share price has collapsed by more than 50% to its current level. It will be interesting to see how investors react to today’s news when Bellevue is released from its suspension on Wednesday or once its application has been heard.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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