After its shares were embarrassingly suspended on the ASX just yesterday due to a “technical oversight”, Helloworld Travel has managed to rectify the issue.
In a statement issued this morning, the ASX announced the suspension of trading in Helloworld shares had been lifted, having granted the travel company a case-specific waiver allowing an extension to lodge its 30 June 2020 audited accounts until no later than 15 October 2020.
“Helloworld lodged its Appendix 4E on 31 August 2020 without expressly satisfying the conditions for the ASX class waiver issued on 16 June 2020, ‘Extended Reporting and Lodgment Deadlines’, while establishing its intention to use the class waiver by confirming the date intended to lodge its audited financial statements,” the ASX statement read.
“Although the company did not explicitly satisfy all the conditions of the ASX class waiver, in essence, it met the requirements substantively and in spirit, and a waiver from Listing Rule 4.5.1 was granted to put the company in the same position as if it has the benefit of the ASX class waiver until 15 October 2020.”
Helloworld welcomed the resumption of trading on the ASX, and said it was not currently aware of any material update to the unaudited FY20 results it lodged at the end of August.
“At 30 September 2020, HLO had a cash balance of $178 million, including circa $100 million of unrestricted cash, with an additional $9 million of headroom on existing facilities,” the company said in a statement.
“This is sufficient to sustain the business through a prolonged period of disruption to the global travel industry based on our current and projected monthly nett cash burn of circa $2 million (unaudited) per month.”
Helloworld said it will provide the market with a Q1 trading update later this month, and noted its “strong liquidity and a significantly lower cost base across all key business operations”.
“We are confident we can continue to adapt the business to the circumstances that confront us and take advantage of opportunities as they arise and emerge from this crisis in a very strong position,” it said.
“HLO’s corporate business is trading at levels around 35 per cent on the previous year, our wholesale and retail businesses are trading at around 10 per cent of previous volumes and our retail agency networks remain strong with agents showing a tremendous amount of resilience. Further details will be provided in our trading update.”
Featured image source: iStock/kokkai