Sealegs owner looks to exit NZX

Future Mobility Solutions (FMS), which owns amphibious boat maker Sealegs, has applied delist its shares from the NZX.

FMS said it had previously considered a delisting from NZX in 2017.

“The board has continued to review its position and it believes that the costs of maintaining an NZSX listing far outweigh the residual benefits of maintaining a listing,” it said.

FMS said it had recently submitted an application to delist from the NZX.

“Whilst FMS is still in discussions with NZX, the intention is that shareholders will be asked to vote on the delisting at the upcoming AGM and FMS will seek to list on the Unlisted Securities Exchange as soon as possible following the AGM,” it said in a statement.

On the Unlisted exchange, investors trade at their own risk and do not have the protections provided by the Financial Markets Conduct Act.

FMS reported a loss of $6.3m in the March year, compared with a loss of $2.6m in the previous year.

The company’s auditors, Grant Thornton, said in the annual report that there was “material uncertainty” surrounding the company as a going concern.

“We draw attention to the significant accounting policies within the consolidated financial statements, which indicates that the group incurred a net loss after tax of $6.3m during the financial year and incurred net cash outflow from operations for the financial year of $2.3m,” Grant Thornton said.

“Further, the group is dependent on its ability to raise additional funding . . . to be able to meet all obligations as they fall due,” it said.

“The matter indicates that there is a material uncertainty that may cast significant doubt over the group’s ability to continue as a going concern,” it said.

The Court of Appeal yesterday released the injunction that Sealegs had previously won against Orion Marine that stopped Orion from making amphibious boats.

The company’s shares closed yesterday at 7.4c. The share price has fallen by 41 per cent over the last 12 months.