Zimi Limited Suspends Sales to GSM Electrical Pending ASX Review.

Zimi Limited (ASX: ZMM) has suspended sales to GSM Electrical (Australia) Pty Ltd following notification from the ASX regarding potential non-compliance with listing rule 10.1. This rule requires shareholder approval for transactions involving related parties under certain conditions. The sales were made under a Distribution Agreement established in 2020 between Zimi’s subsidiary, Zimi Innovations, and GSM Electrical, a major distributor and associate of the Company’s major shareholder, Gerard Private.

Details of previous sales to GSM Electrical were disclosed in Zimi's FY22, FY23, and FY24 financial statements, with all transactions conducted on standard terms applicable to all distributors. The suspension, pending ASX’s determination, is expected to have a significant negative impact on Zimi’s revenue and earnings for the current financial year. Despite this setback, sales to other customers and distributors remain unaffected, and Zimi continues discussions with the ASX to resolve the matter.

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