The Takeovers Panel has received an application from Dronkay Pty Ltd concerning the affairs of Emu NL (ASX:EMU), a precious and base metals explorer listed on the ASX. Dronkay Pty Ltd, a shareholder of Emu, is challenging the company’s recent actions, specifically related to an upcoming extraordinary general meeting (EGM) and a proposed entitlement offer. A sitting Panel has not yet been appointed to the matter, and no decision has been made regarding whether to conduct proceedings. The Panel has made no comment on the merits of the application.
The application stems from Emu’s notice for an EGM scheduled for September 29, 2025, addressing director removal and appointment, as previously ordered by the Panel. Concerns have been raised in relation to a debt facility secured with Northmead Holdings Pty Ltd, a substantial holder in Emu, and a subsequent entitlement offer to raise approximately $1,826,681. The applicant alleges potential issues with the allocation of shortfall shares and the intended use of funds to repay the Northmead loan, potentially influencing the outcome of the EGM.
Dronkay seeks interim orders to restrain Emu from issuing shares and options under the Entitlement Offer and prevent the funds raised from being used to repay the Northmead loan until the Panel concludes its proceedings. Final orders requested include the withdrawal and reissuance of the Entitlement Offer prospectus with corrective disclosure, a transparent allocation policy for shortfall, and board approval for any repayment of the Northmead loan if a new board is elected at the EGM.
The Takeovers Panel will consider the application and determine whether to proceed with further investigation.
