Ecofibre has been placed into voluntary administration and its shares have been suspended from trading on the Australian Securities Exchange (ASX).
A brief statement released this morning confirmed that KordaMentha has been appointed to manage the company's financial affairs.
Shortly after that announcement, a separate notice confirmed Ecofibre's suspension from the ASX.
"Having regard to the announcement of the appointment of voluntary administrators… ASX has determined that [Ecofibre's] financial condition is not adequate to warrant the continued quotation of its securities," it said.
The company itself has yet to release any formal statement on the matter.
Ecofibre had once appeared to be on a promising trajectory, posting profits of A$13 million in 2020, but its financial position deteriorated sharply in subsequent years, with mounting losses and little meaningful revenue growth to show for the period.
For the first half of FY25, the company recorded a loss of $17.3m — an improvement compared to the $45m deficit posted in H1 FY24, though still a substantial shortfall.
Across the full financial year to June 2024, Ecofibre's losses totalled $38m.
Barry Lambert, the backer of the research initiative that carries his name, served as Ecofibre's chairman and remains a major shareholder in the company.
More to follow.
