Next Science Secures ASX Waiver to Return Capital After $50M Asset Sale
Next Science has obtained a crucial ASX waiver allowing it to return surplus capital to shareholders following its $50 million asset sale, despite expected share price declines below 20 cents.
- ASX grants waiver from Listing Rule 7.25 enabling capital return
- Capital return follows $50 million asset sale to OSARTIS GmbH
- Share price currently at 13.5 cents, expected to drop post-return
- Shareholder approval sought at January 2026 extraordinary meeting
- Next Science plans ASX delisting after asset disposal
Context of the Waiver
Next Science Limited (ASX – NXS) has secured an important waiver from the Australian Securities Exchange (ASX) that permits the company to proceed with a capital return to shareholders. This waiver is significant because it allows the company to distribute surplus capital even though such a move is expected to push its share price below the 20-cent threshold stipulated by ASX Listing Rule 7.25.
Background – Asset Sale and Capital Return
The capital return follows the completion of a major transaction announced earlier this year, where Next Science sold substantially all of its assets to OSARTIS GmbH, a Demetra Holding company, for US$50 million. This sale, finalized in mid-September 2025, marked a pivotal shift for the company, effectively transitioning it away from its previous operational model.
With the asset sale completed, Next Science is now looking to return surplus capital to its shareholders. The company plans to convene an extraordinary general meeting in January 2026 to seek shareholder approval for this interim capital return under Australian corporate law.
Implications of the ASX Waiver
Under normal circumstances, ASX Listing Rule 7.25 restricts companies from reorganizing capital if it would cause the share price to fall below 20 cents. However, Next Science’s share price has been trading below this level for some time, currently around 13.5 cents, with a 52-week range between 5.5 and 15.5 cents. The waiver effectively removes this barrier, allowing the capital return to proceed despite the anticipated further decline in share price following the distribution.
This waiver is crucial because, without it, the company would have been unable to return surplus capital, potentially leaving shareholders with less immediate value from the asset sale proceeds. The move signals a focus on returning value directly to investors as the company winds down its previous business operations.
Next Steps and Market Outlook
Shareholders will receive detailed information about the capital return in the notice for the upcoming extraordinary general meeting, expected to be lodged imminently. Investors will be watching closely to see the level of shareholder support for the return and how the market reacts to the share price adjustments post-distribution.
Additionally, Next Science has submitted an application to ASX seeking removal from the official list, indicating a potential delisting following the asset sale and capital return. This marks a significant transition phase for the company, moving from an operating entity to a capital return vehicle.
Bottom Line?
Next Science’s ASX waiver clears the path for a shareholder capital return, setting the stage for a transformative phase ahead.
Questions in the middle?
- What will be the exact amount and timing of the capital return proposed to shareholders?
- How will the market respond to the expected share price decline following the capital return?
- What are the implications and timeline for Next Science’s potential delisting from the ASX?
