One of the ASX shell plays that I posted about recently was Olea Australis (OLE). I'm revisiting this one because the time frame for any action has now shortened or become clearer after the announcement made on 01/03/2011.
I have seen on occasions when the ASX will issue a query or 'please explain' to companies that have held cash and little in the way of a business activity or any assets for an extended period of time. An example that comes to mind was Wavenet International (WAL) which held cash for ages and received this query. This was an excellent example of a shell play that has seen the stock rise from $0.08 to $0.60 after vending in coal assets.
If you get a moment I would recommend reading the response made by OLE to the ASX. The company has stated 'the directors have held preliminary discussions with at least ten parties interested in Olea as a basis for a transaction for a listing on the ASX' In lamens terms this means backdoor listing another company.
OLE proceeds to advise that none of these discussions are advanced enough to warrant further disclosure. The company does however state that 'the directors anticipate that OLE would be in a position to demonstrate to the ASX within four months that it is compliant with listing rules 12.1 and 12.3' In other words OLE will be making some form of announcement in regards to this back door listing within 4 months - we now have a clear timeframe!
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