Can Rewardle Holdings Avoid ASX Delisting by September Deadline?

Prolonged Suspension and Delisting Threat

Rewardle Holdings Limited (ASX, RXH) has been suspended from trading on the Australian Securities Exchange since October 2023, primarily due to its failure to lodge required financial statements. The ASX has now escalated the situation, scheduling the company for removal from the official list unless it meets critical reporting deadlines in the coming months.

The suspension, which has persisted for nearly two years, stems from RXH’s inability to provide its full-year accounts for the period ended 30 June 2023, as well as subsequent periodic reports. The ASX’s latest correspondence makes clear that without the lodgement of the Preliminary Final Report for FY2024 by 30 August 2025 and the audited accounts for the same period by 30 September 2025, RXH faces automatic delisting on or shortly after these dates.

Complexities Around CloudHolter Audited Accounts

Central to RXH’s reporting delays is its significant equity interest; just under 50%; in CloudHolter Pty Ltd, a private company whose audited accounts are necessary for RXH’s own financial statements. Since June 2022, RXH has invested over $21 million into CloudHolter by converting debt to equity, making CloudHolter both RXH’s largest debtor and client, accounting for more than 95% of its revenue in FY23.

However, RXH does not control CloudHolter and lacks board representation, complicating the timely preparation and audit of CloudHolter’s accounts. Notably, CloudHolter’s founder is the brother of RXH’s Executive Chairman, adding a layer of familial connection but no formal governance control. This dynamic has contributed to the prolonged delay in finalising audited accounts, which the ASX views as a critical compliance failure.

ASX’s Compliance Demands and Next Steps

The ASX has made it clear that reinstatement of RXH’s securities to trading will only occur once the outstanding financial reports are lodged to its satisfaction and the company provides detailed submissions demonstrating its ability and willingness to comply with ongoing listing rules. These submissions must address not only financial reporting obligations but also broader compliance with rules governing continuous disclosure and shareholder communications.

RXH has until 5pm AWST on 18 September 2025 to submit these documents and explanations, ahead of the critical two-year suspension anniversary on 2 October 2025, which would trigger automatic removal from the ASX. Failure to meet these requirements will almost certainly result in delisting, marking a significant setback for the company and its investors.

Implications for Investors and Market Confidence

This prolonged suspension and looming delisting highlight the challenges faced by companies reliant on complex equity accounting arrangements with private entities. For investors, the uncertainty surrounding RXH’s financial transparency and governance raises questions about the company’s future viability and market standing. The ASX’s firm stance underscores the importance of timely and transparent reporting in maintaining investor confidence and market integrity.