Toronto-based Velox Energy Materials ( TSXV:VLX) provided an update on its ASX listing on Monday (March 17), saying it continues to seek a path forward after its application was denied last September.
According to Velox, the ASX said the company’s Kotai hydrogen project, and the proposed activities and obligations associated with Kotai, are too early stage to form part of its listing assets.
Kotai is located in Perth, while Velox’s flagship North Queensland vanadium project (NQVP) is in Queensland.
When Velox announced plans to dual list in August 2024, CEO Simon Coyle said it was “only logical” that the company would seek further exposure to Australian investors via a dual listing on the ASX.
At the time, the company also received a commitment of AU$4 million to AU$5 million from Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund (QCMBTF) to advance the NQVP.
Velox said it actively engaged with QCMBTF throughout the ASX listing process and potential divestment of the Kotai hydrogen project, with QCMBTF agreeing to extend the long stop date to March 21, 2025.
“However, due to various uncertainties, primarily related to the divestment timeline of the Kotai Hydrogen project and its impact on the dual listing process, the company has agreed with QCMBTF to not extend the long stop date beyond 31 March 2025 and to terminate documentation relating to the QCMBTF’s investment,” Velox wrote.
The company said it remains committed to divesting Kotai, exploring alternatives and maximising shareholder value.
Kotai is a research project by Velox in collaboration with experts from Curtin University in Perth. It explores the viability of utilising sodium borohydride as a secure hydrogen carrier, enabling on-demand deployment wherever needed.
The NQVP remains a priority for Velox, with a second exploration target defined in May 2024.
To preserve cash, the company said it will make management and board changes. Coyle is stepping down as CEO and president, and will give up his board seat by March 31; Mark Connelly will also resign from the board.
Nicole Morcombe, a director at Velox, will take over as interim CEO and president. She will retain her position as director, as will Michael Griffiths; Vincent Algar of Tennant Minerals (ASX:TMS) is joining the board as its third director.
Velox will be settling a portion of its debt, issuing 919,483 shares at C$0.06 each to pay outstanding director fees of C$55,169 to Connelly. The company is also planning to issue shares to save cash for future operations.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.