17 Nov 2009

Technology company quits AX market

7:12 am on 17 November 2009

Transport technology firm Connexionz is delisting from the stock exchange's alternative market because it says it is too expensive and the compliance burden too high.

Connexionz chairman Craig Boyce says the company will move to the rival unregistered exchange, Unlisted, in a few weeks, because it costs just a fraction of the price.

Connexionz will be the first company to move from the NZX's AX market to Unlisted.

Mr Boyce says shareholders agree the annual $50,000 to maintain its AX listing is no longer viable considering it made $210,000 profit last year.

In comparison, he says, Unlisted will charge the company an annual fee of about $5,000.

However NZX products group manager Geoff Brown says the two exchanges charge about the same, and any additional compliance costs are as a consequence of rules in place to protect investors.

Mr Brown says the AX trades four times more value and volume than Unlisted.

Southern Travel Holdings is also considering delisting if business continues to deteriorate, because the cost of maintaining its listing is too high.