CMX
Chemx Materials Limited
ASX
Approval of Deeds of Company Arrangement
Sentiment:
Insolvency Announcement
13 April 2025 9:55 PM
ChemX Materials Limited's creditors have approved Deeds of Company Arrangement with Benelong Capital Partners for the company and Alluminous for its subsidiary HiPura, following the appointment of administrators.
Capital raise
Benelong Capital Partners (BCP) recapitalisation proposal requires ASIC, ASX and shareholder approval.
Summary
- Administrators were appointed for ChemX Materials Limited and its subsidiary HiPura Pty Ltd on January 2, 2025.
- Creditors approved Deeds of Company Arrangement (DOCA) for both companies on April 11, 2025.
- Benelong Capital Partners (BCP) will pay a $25,000 deposit and a further $125,000 upon satisfaction of conditions for the ChemX Materials DOCA.
- Completion of the ChemX Materials DOCA is conditional on ASIC, ASX, and shareholder approval for BCP's recapitalization proposal, and the removal/replacement of the company's directors.
- Priority creditors of ChemX Materials will be paid in full, and unsecured creditors may receive up to 44 cents in the dollar.
- Alluminous will pay $2,200,000 on or before April 28, 2025, for the HiPura DOCA.
- Completion of the HiPura DOCA is conditional on the removal/replacement of the director of HiPura and the assignment of the lease at 3 Flindell Street, O'Connor, WA 6163 to Alluminous.
- HiPura creditors may receive 68 cents in the dollar in repayment of the parent company loan.
- The administrators will provide updates via ASX announcements.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While the DOCAs provide a path forward, the company is in administration, and existing directors will be replaced. There is some potential for recovery for creditors, but the future remains uncertain.
Highlights
- Creditors of ChemX Materials and HiPura approved Deeds of Company Arrangement on April 11, 2025.
- Benelong Capital Partners (BCP) will pay a total of $150,000 for the ChemX Materials DOCA, subject to conditions.
- Unsecured creditors of ChemX Materials may receive up to 44 cents in the dollar.
- Alluminous will pay $2,200,000 for the HiPura DOCA by April 28, 2025.
- HiPura creditors may receive 68 cents in the dollar in repayment of the parent company loan.
Positives
- Creditors approved Deeds of Company Arrangement for both ChemX Materials and HiPura, providing a path forward.
- Priority creditors of ChemX Materials will be paid in full.
- Unsecured creditors of ChemX Materials may receive up to 44 cents in the dollar.
- HiPura creditors may receive 68 cents in the dollar in repayment of the parent company loan.
Negatives
- ChemX Materials and HiPura entered voluntary administration on January 2, 2025.
- Existing directors of ChemX Materials and the director of HiPura will be removed and replaced as part of the DOCA conditions.
Risks
- The ChemX Materials DOCA is conditional on ASIC, ASX, and shareholder approval for BCP's recapitalization proposal.
- The HiPura DOCA is conditional on the assignment of the lease at 3 Flindell Street, O'Connor, WA 6163 to Alluminous.
- There is no guarantee that unsecured creditors will receive the estimated 44 cents in the dollar for ChemX Materials.
- The success of the DOCAs depends on the fulfillment of all conditions.
Future Outlook
The future of ChemX Materials and HiPura depends on the successful completion of the Deeds of Company Arrangement, including obtaining necessary approvals and fulfilling conditions.
Management Comments
- The Administrators will provide updates throughout the administration by way of announcements to the ASX.
- Shareholders are asked to refrain from contacting the Administrators office at this time.
Industry Context
This announcement reflects the challenges faced by companies in the materials sector, particularly those undergoing restructuring or facing financial difficulties. The appointment of administrators and subsequent DOCAs are common procedures for companies seeking to reorganize their debts and operations.
Comparison to Industry Standards
- The potential recovery rate for unsecured creditors of ChemX Materials (up to 44 cents in the dollar) is within the typical range observed in DOCA scenarios, but can vary significantly depending on asset values and creditor claims.
- Similar situations can be seen with other companies undergoing restructuring, such as [Hypothetical Company A] where unsecured creditors received [Hypothetical Percentage]% recovery, or [Hypothetical Company B] where the recovery was [Hypothetical Percentage]%.
- The success of the DOCA will depend on factors such as the ability of BCP and Alluminous to execute their recapitalization plans and the overall market conditions for ChemX Materials' products.
Stakeholder Impact
- Shareholders will likely see significant dilution or loss of value due to the recapitalization.
- Employees face uncertainty regarding their jobs, although the DOCAs aim to stabilize the companies.
- Creditors may recover a portion of their debts, but the extent of recovery varies.
- Suppliers may need to renegotiate terms with the restructured companies.
- Customers may experience disruptions during the transition period.
Next Steps
- Obtain ASIC, ASX, and shareholder approval for BCP's recapitalization proposal.
- Remove and replace the directors of ChemX Materials and the director of HiPura.
- Assign the lease at 3 Flindell Street, O'Connor, WA 6163 to Alluminous.
- Complete the payments outlined in the Deeds of Company Arrangement.
- Administrators to provide updates via ASX announcements.
Key Dates
- 2 January 2025: Administrators appointed for ChemX Materials Limited and HiPura Pty Ltd
- 11 April 2025: Creditors resolved to execute Deeds of Company Arrangement for both companies
- 28 April 2025: Date on or before which Alluminous will pay $2,200,000 for the HiPura DOCA
Keywords
Deed of Company Arrangement, Voluntary Administration, HiPura, ChemX Materials, Creditors, BCP, Alluminous, Insolvency
CMX
Chemx Materials Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
13 April 2025 9:55 PM
Insolvency Announcement
- Benelong Capital Partners (BCP) recapitalisation proposal requires ASIC, ASX and shareholder approval.
Worse than expected
29 December 2024 5:48 PM
Trading Suspension Extension Request
- The company is not ready to announce a Funding Update and Management Restructure, which is causing a delay in trading and is worse than expected.
Delay expected
29 December 2024 5:48 PM
Trading Suspension Extension Request
- The company is delaying the release of the Funding Update and Management Restructure announcement.
- The trading suspension is being extended due to the delay in the announcement.
Delay expected
22 December 2024 5:25 PM
Trading Suspension Update
- The company's funding update and management restructure are taking longer than anticipated.
- Negotiations with relevant parties have caused a delay in the announcement.
Capital raise
18 December 2024 5:08 PM
Suspension Announcement
- The announcement is related to an update on funding, which could indicate a potential capital raise.
Capital raise
16 December 2024 5:06 PM
Trading Halt Request
- The trading halt is pending an announcement regarding an update on funding, which could indicate a potential capital raise.
Capital raise
11 December 2024 5:11 PM
Financing Agreement Update
- Mercer has approved ChemX to raise up to $500,000 in additional debt financing.
Delay expected
27 November 2024 9:50 PM
AGM Presentation
- The commissioning of the 24tpa HPA Pilot Plant has experienced unforeseen delays in recent months, primarily due to the solvent extraction (SX) module awaiting electrical package installation.
Worse than expected
27 November 2024 9:50 PM
AGM Presentation
- The announcement revealed unforeseen delays in the commissioning of the solvent extraction module of the pilot plant, pushing back the timeline for full operation.
Better than expected
13 November 2024 5:17 PM
R&D Funding Announcement
- The receipt of the R&D refund exceeding the amount of the Radium Capital facility was better than expected, resulting in a surplus for working capital.
Capital raise
7 November 2024 1:19 AM
Price Query Response
- ChemX is in discussions with third parties regarding potential capital raisings.
- No formal agreements have been reached for any capital raising.
Capital raise
30 October 2024 9:06 PM
Quarterly Report
- The company has appointed TritonLake as Corporate and Financial Advisors to assist with capital, financing and corporate advisory.
- The company believes it would be successful with raising additional capital.
Worse than expected
30 October 2024 9:06 PM
Quarterly Report
- The delays in the Solvent Extraction module of the pilot plant represent a setback from the expected timeline for commissioning.
Delay expected
30 October 2024 9:06 PM
Quarterly Report
- Delays were experienced in the construction of the Solvent Extraction (SX) module due to longer than expected lead times on key process equipment and delivery of critical electrical infrastructure.
Capital raise
24 October 2024 6:10 PM
Notice of Annual General Meeting
- The 7.1A mandate seeks shareholder approval to issue up to 10% of the company's issued capital in equity securities without further shareholder approval.
- The funds raised under the 7.1A mandate are intended to be used for the 24tpa HiPurA high purity alumina (HPA) pilot plant and working capital.
Worse than expected
23 October 2024 5:19 AM
Annual Report
- The company reported a net loss after tax of \$4.49 million, significantly higher than the previous year's loss of \$4.18 million, indicating worse than expected results.
Capital raise
23 October 2024 5:19 AM
Annual Report
- The company raised \$1,616,600 through a share placement and share purchase plan.
- A \$6,000,000 convertible note funding facility was secured, with potential for further equity dilution upon conversion.
Capital raise
30 July 2024 4:54 AM
Quarterly Activities Report
- The company has applied for an advance from a funding provider against expected CMX FY24 R&D claim for circa $440,000.
- The Company also has access to financial markets and believes it can successfully raise capital.
Capital raise
29 April 2024 7:02 PM
Quarterly Activities Report
- The company completed a $1.1M placement.
- A Share Purchase Plan (SPP) is ongoing, aiming to raise up to $500,000.
- Directors have committed to subscribe for 1,354,166 shares, subject to shareholder approval, under the Placement to raise an additional $65,000 at the same issue price.
Delay expected
21 April 2024 7:10 PM
Share Purchase Plan Extension Announcement
- The closing date of the SPP has been extended from April 23, 2024, to May 10, 2024.
Capital raise
2 April 2024 5:48 PM
Share Purchase Plan Announcement
- The document mentions that it is highly likely that further funding will be required to meet the medium to long term working capital costs of the Company.
- Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities.
Capital raise
13 March 2024 2:33 AM
Interim Report
- The company has access to a further $3,800,000 funding under its unsecured convertible note facility, subject to further agreement between the parties.
Worse than expected
13 March 2024 2:33 AM
Interim Report
- The company reported a net loss of $1,911,696 for the half-year ended December 31, 2023, which is worse than breakeven.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.