In an update on Friday, June 21, Alistair Clarkson, secretary and general counsel for troubled Australian online bookseller Booktopia, filed a motion asking that trading of its stock remain suspended through at least the end of this week.
The company voluntarily suspended its stock trading earlier this month as it undertook a strategic review to seek additional funding to improve its financial viability. The e-tailer said that it needs for the suspension to be maintained until it has completed that review, which it now says it hopes to have completed by June 28.
In the new update, Booktopia indicated that its financial position remains grave as it faces liquidity challenges. To overcomes its problems, Booktopia reported that it continues to seek support from suppliers, existing shareholders, and other potential funding sources. It is also exploring alternative strategic options, which likely means it is seeking a buyer. The new note suggests that progress on some of these initiatives may be making headway, with Clark writing that “indicative interest” has been received “from some of these parties and they are currently undertaking due diligence of the Company to determine if support will be forthcoming.”
Some sort of deal is necessary, the update stressed, “for the company’s continued financial viability.” The trading suspension is necessary, Gordon writes somewhat understatedly, since the performance of its stock will be greatly affected by the results of the review.
The online retailer, which went public in 2020, has faced a series of struggles, including slumping financial results, the resignation of its CEO, and the firing of some 50 employees.
