Were you looking forward to the expected return to trade of BWX Ltd (ASX: BWX) shares? Well, we have some bad news.
The company seemingly dashed hopes it will end its near-three-month trading halt tomorrow, despite flagging its return only last week.
The BWX share price has been frozen at 63 cents since late August as the company works to correct issues with its yet-to-be-released financial year 2022 (FY22) earnings report.
So, what's the latest news from the natural skin and hair care company? Let's take a look.
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Hopes BWX shares might trade tomorrow dashed
It might be a sad day for fans of BWX shares. It appears the company is no longer expecting to exit the freezer this week, as previously forecast.
As it entered its current trading halt in August, BWX said it will likely return to trade on the release of its audited FY22 earnings. More recently, it said the results were expected to drop today and its ASX suspension would likely lift tomorrow.
But today only brought disappointment for those hoping to trade BWX shares.
Instead of flicking through the company's long-awaited accounts, the market heard the BWX board won't release the report until it gets closer to procuring additional debt funding.
Though, it did note key parts of the audit of its FY22 financial statements have been finalised, including revenue recognition issues for FY21 and the first half of FY22, as well as the impairment of intangible assets.
The company said it has engaged strategic advisors to help procure extra debt funding. The funding will allow it to push ahead with its restructuring plans, address its inventory rundown, and continue selling its non-core assets. Today's release stated:
While this process is well advanced, it will take time to evaluate the offers received. Until that process is further advanced and certainty of funding is secured, the board is unable to finalise the FY22 audited financial statements. The company confirms that its principal bank lender remains supportive.
Additionally, BWX revealed its chief financial officer Efee Peell has resigned, effective today. Peell is stepping down for health reasons following an extended period of leave.
The company has begun a search for her replacement. Until one is found, Birol Akdogan has stepped up to the role.
Perhaps disappointingly, there was no word of when the market might now expect the stock to return to trade. No doubt all eyes will remain on BWX shares until another update is released.
