Embelton Limited (ASX:EMB) has announced it will seek shareholder approval at an extraordinary general meeting (EGM) scheduled for December 2026 to remove the company from the official list of the Australian Securities Exchange, citing limited trading liquidity and annual listing-related costs of $160,080.

Key Points

  • Embelton will seek a special resolution at an EGM in December 2026 to approve voluntary delisting under ASX Listing Rule 17.11A.2.
  • There are currently 2,157,857 EMB shares on issue, with the top three shareholders holding approximately 74.42% of issued capital in aggregate.
  • Expected annual costs associated with remaining listed total $160,080, comprising accounting and company secretarial staff ($113,000), ASX annual listing fee ($39,080), and ASX and registry fees, AGM, proxy and annual report printing fees ($8,000).
  • If approved, the delisting will occur no earlier than one month after shareholder approval, with the company to remain subject to the Corporations Act 2001 as an unlisted disclosing entity.

Limited Trading Activity and Share Concentration

According to the filing, trading volumes in EMB shares have been extremely low in recent months. In August 2026, only 75 shares traded across one day out of 21 available trading days, representing 0.003% of total issued shares, with an average daily value of $33. In September 2026, 1,926 shares traded across one day out of 22 available trading days, with an average daily value of $726. The filing also discloses that the percentage of issued capital held by the top 20 shareholders has been between 88.847% and 90.146% in each year since August 2023.

Board Rationale and Cost Considerations

The board of directors stated it considers the delisting to be in the best interests of the company and its shareholders for reasons including limited trading and liquidity, cost savings, and management time. The board stated it does not believe there will be a significant increase in shareholder spread or liquidity in the foreseeable future. The board also noted that a significant portion of management time is being dedicated to matters relating solely to the ASX listing, and that delisting would allow management time to be directed to other matters.

Consequences of Delisting for Shareholders

The filing states that if the delisting proceeds, shares will cease to be quoted and traded on the ASX, and CHESS holdings will be converted to the certificated sub-register with no action required by shareholders. Outside of proposed share buy-back arrangements to be detailed separately, shareholders would only be able to sell shares via off-market private transactions. The company stated it has no present intention to list any securities on any other securities exchange and cannot provide assurances that a liquid market for its shares will exist after delisting. The company will continue to be governed by the Corporations Act, including continuous disclosure obligations under section 675.