Following a tumultuous few weeks for Freedom Foods, trading in the company's shares will remain suspended until October 30, in what the board of directors consider "a prudent and realistic timeframe" to resolve the issues plaguing the company.
The embattled manufacturer of dairy and cereal products has been left exposed by financial irregularities, including a $10 million blowout in debts to $14m, the shock discovery of stockpiles of outdated long life milk and other products held since 2017 and the resignation of managing director Rory Macleod and chief financial officer Campbell Nicholas.
On June 25, the ASX advised that Freedom Foods Group Limited (ASX code FNP) shares would be suspended from quotation, pending the outcome of further investigations in relation to the company's dire financial position.
This followed the company's request to suspend quotation for 14 days.
In a statement released on Wednesday, the Freedom Foods board said it "was of the view that investors require comprehensive and up-to-date information as to the impact of the historical issues identified and the financial position and outlook of the company".
It went on to say that, "trading in the securities of the company should not recommence until more clarity can be provided".
There are a number of interconnected activities that need to be undertaken before the company is in a position to provide that information, including the appointment of a new permanent chief executive officer and chief financial officer.
- Freedom Foods boss Rory Macleod returns from leave, to leave
- Freedom Foods management shake up after surprise losses hit home
Despite the challenges Freedom Foods is facing, chairman Perry Gunner has assured farmers it would honour its milk contracts.
The company will remain in a trading halt now until the ASX opens on Monday, November 2.