FCA regulated Retail Forex, CFDs and Spread Betting broker London Capital Group Holdings plc (LON:LCG) has announced that it plans to delist the company’s shares from trading on the London Stock Exchange’s AIM market.
LCG didn’t give an exact date for the delisting, just that it would convene a shareholders meeting to vote on the matter “in the coming weeks.” The delisting requires three-quarters of shareholders to approve the move.
The move doesn’t come as too much of a surprise, as LCG announced just last week that it was (also) listing its shares on the NEX Exchange Growth Market run by NEX Group PLC (LON:NXG), known as ‘the other London stock exchange’.
LCG shares reacted negatively to the news, trading down by nearly 50% on Friday morning to just 0.85p.
The move is being done mainly as a cost cutting exercise. Listings on the NEX Exchange are much less costly to maintain than on the AIM. And, LCG hadn’t seen much trading activity in its stock in the past year, as the company continues it turnaround under an investor group which bought the company about three years ago, led by CEO Charles-Henri Sabet.
The full announcement made by LCG on the matter reads as follows:
22 December 2017
London Capital Group Plc
Proposed cancellation of trading in the Company’s shares on AIM
London Capital Group announces that, following discussions with representatives of GLIO Holdings (the Company’s largest shareholder), the Company has decided to seek shareholder approval to cancel trading in its ordinary shares on AIM.
This decision has taken into account, amongst other things, the costs of maintaining trading in the Company’s ordinary shares on AIM and the limited liquidity in the Company’s ordinary shares. Against this background, and the Company’s recent admission to the NEX Growth Market (“NEX”), GLIO Holdings have concluded that NEX would be a more appropriate market for the Company’s shares to be traded on.
A notice convening a general meeting of the Company’s shareholders will be sent to shareholders in the coming weeks. At the general meeting a resolution will be proposed to approve the cancellation of trading in the Company’s ordinary shares on AIM (“Cancellation”). Cancellation will be conditional on the consent of not less than 75% of votes cast by shareholders.
Shareholders should note that GLIO Holdings own 78.14% of the Company’s issued share capital. GLIO have indicated to the Board of the Company that they intend to vote in favour of the cancellation of trading in the Company’s shares on AIM.
Following Cancellation, the Company will cease to be bound by the AIM Rules for Companies.