YBR VOLUNTARY DELISTING FROM ASX

Following an application for a trading halt on Thursday 14 September, Yellow Brick Road Holdings Limited (YBR) has announced that it has formally applied to the Australian Securities Exchange (ASX) requesting its removal from the official list of the ASX. This application follows YBR obtaining in-principle advice from the ASX to the effect that the ASX is likely to agree to the delisting, subject to the satisfaction of certain conditions, including obtaining shareholder approval.

The proposed Delisting will be put forward for shareholder approval at a general meeting to be held on or around 24 October 2023.

YBR’s Board and management are pursuing this strategic approach after careful consideration of the benefits for the Company and its shareholders. These include:

• The share trading price does not reflect the underlying value of the business, which has been the case for several years.
• The current spread of shareholders is not sufficient to maintain an orderly and liquid market for trading in YBR shares, and this is unlikely to change in the foreseeable future.
• Due to the level of YBR’s share price, raising a material capital amount would be highly dilutive to current shareholders and would further depress the share price.
• The ongoing administrative and compliance obligations, and costs associated with maintaining the listing of YBR’s shares on the ASX are disproportionate to the benefit obtained from being listed.
• The redistribution of YBR’s management time from matters relating to the ASX listing to other value-add matters for the benefit of the business.

Major shareholders Magnetar Capital LLC, Sandon Capital Investments Ltd, Nine Entertainment Co, and interests associated with Mark Bouris Family Company Investments (YBR’s largest individual shareholder) are well aware of the delisting strategy.

Gabriel Radzyminski, Chief Investment Officer of Sandon Capital Investments Ltd – “The delisting strategy is an important step in the future of the Yellow Brick Road Group. We are excited about the future developments for this uniquely positioned well branded distributor of what is a basic consumable for Australians, their mortgage “ 

Mark Bouris, Executive Chairman – ” I have just spent a few days at our annual residential mortgage conference with hundreds of our franchisees, brokers, and delegates. The overwhelming response has been strong support for the delisting strategy and the flexibility and savings it brings to the group. Generally, everyone is very positive about our future as both a branded mortgage and aggregation group.”

This is a significant and positive strategic step for the Company, giving YBR greater flexibility to pursue and execute its business strategy and other initiatives as outlined in the FY23 investor presentation, as well as other value-enhancing strategic opportunities and corporate transactions following a Delisting.

For greater details please refer to the other announcements by YBR uploaded to the ASX today.

Media Contact details:

Nick Fordham – The Fordham Company

Email: [email protected]

Phone: +61408787160