Velox Energy Materials (TSX-V:VLX) has been unable to get its planned dual listing on the ASX over the line and is undergoing a management and board reshuffle.
Velox says its application to list on the Australian bourse was not approved because the ASX formed the view that Velox’s Kotai Hydrogen Project and proposed activities and obligations with respect to the project were too early-stage for that project to form part of its listing assets.
“The company is extremely disappointed with this decision as it has delayed the potential dual listing until such time as the company divests the Kotai Hydrogen asset,” Velox says.
“Despite this setback, the company remains committed to working through the divestment of the Kotai Hydrogen Project and is focused on finding positive outcomes.”
Velox adds that since receiving notification from the ASX it has worked through a variety of alternatives to divest the project.
As part of the planned ASX listing, Velox secured a conditional commitment for a cornerstone investment of between $4 million and $5 million from the QIC Critical Minerals and Battery Technology Fund (QCMBTF), a fund managed and administered by QIC.
Brisbane-headquartered QIC is owned by the Queensland Government and has over $100 billion in assets under management – making it one of the largest institutional investment managers in Australia.
Velox previously negotiated an extension to the investment agreement until 31 March 2025, but given the delay in the ASX listing Velox and QCMBTF have now agreed to terminate the agreement.
The company, which has a market capitalisation of C$5.7 million ($6.3 million), is also making management and board changes due to the evolving strategic objectives and to preserve cash.
Simon Coyle will step down as CEO and President as well as give up his board seat from the end of March.
Director Nicole Morcombe will assume the role of interim CEO and President but will not receive a salary or fees.
Mark Connelly has also vacated his director position effective from 17 March.
Michael Griffiths will remain a director but will also not be paid any fees until Velox has sufficient cash.
Meanwhile, Vincent Algar will join the board from 31 March as an independent Director.
Algar has spent over three decades in the mining sector and is currently CEO of Tennant Minerals (ASX:TMS). Prior to heading up Tennant, he served nine years as Managing Director of Australian Vanadium (ASX:AVL).
Velox is also looking to appoint a second independent Director as soon as possible.
The company says it is prioritising its North Queensland Vanadium project and will continue to seek commercial partners for the Kotai Hydrogen Project so that it can pursue its ASX dual listing.
To settle some of its debt in the short term, Velox is issuing 919,483 shares at C$0.06 each to pay C$55,169 to Connelly for outstanding director’s fees.
Velox says it is proposing to issue shares to preserve its cash to fund future operations.
Write to Angela East at Mining.com.au
Images: Velox Energy Materials
