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Baker contemplates Powerlan delisting

Baker contemplates Powerlan delisting

It's not the $142 million loss, the resignation of key directors or the mess left from the wreck of the company formerly known as Powerlan Queensland that has sent Powerlan's share price plummeting -- the company is just misunderstood, according to Theo Baker.

"We don't have a sector of analysts in Australia that understand what our business does -- no matter how many times we explain it to them," he told shareholders at the company's annual general meeting.

"I believe if you are a shareholder of Powerlan you are holding shares in an extremely valuable company. We have transitioned from essentially a product-selling business. We are no longer that. Powerlan has valuable intellectual property that is recognised globally."

That lack of understanding could lead to Powerlan being delisted from the Australian Stock Exchange. Baker would not rule out a move to the Nasdaq in the US.

"That's something we need to contemplate. It's not out of the question," he said, although he also acknowledged this situation was the same the world over.

The directors will need to look overseas for opportunities -- be that further investment from overseas or exploring the value of being delisted, he said.

Shareholders voted against consolidating Powerlan shares at a ratio of 20:1, a move which was advised by its investment bankers to help improve the company's beleaguered share price.


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