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Merchant House International Limited (ASX:MHI)

ALERT: Price-sensitive ASX Announcement for MHI
Current share price for MHI : $0.150 0.02 (15.38%)+
Announcement
Release
29 Nov 2024 8:21AM
Price at Release
$0.130
Full Release
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Summary
Merchant House International Limited (MHI) reported its half-year financial results for the period ending September 30, 2024, revealing significant operational changes. The company has resolved to permanently cease operations at its American Merchant Inc. textile factory in the USA due to ongoing financial losses, with a recorded loss of A$3.7 million for the year ended March 31, 2024. The closure was finalized in September 2024, and the company is now focused on selling its assets, including land and machinery. Despite the cessation of operations, MHI remains a going concern and is actively seeking buyers for its assets while planning to seek voluntary delisting from the ASX and distribute remaining funds to shareholders.
Key Points
  • MHI has decided to permanently cease operations at American Merchant Inc.
  • The decision was based on continuous financial losses at AMI, totaling A$3.7 million for the fiscal year.
  • The closure took place in September 2024, with the final shipment made on September 30, 2024.
  • MHI is in the process of selling its assets, including land, buildings, and equipment.
  • The company received expressions of interest for its assets but has not secured a definitive buyer yet.
  • MHI plans to seek voluntary delisting from the ASX and distribute remaining funds to shareholders after asset sales.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.