Gusbourne PLC Proposes Cancellation of AIM Listing
Why we think this is bad
The proposed cancellation of Gusbourne PLC's AIM listing is a significant event that could have negative implications for shareholders, particularly in terms of reduced liquidity and loss of shareholder protections. However, the Board believes the cancellation is in the best interests of the company and shareholders, and the company is making arrangements for a secondary market trading facility.
Key Points
- Belize Finance Limited, which holds a 66.8% stake in Gusbourne, has requisitioned a general meeting to consider the cancellation of the company's admission to trading on AIM
- The Board has concluded that the proposed cancellation is in the best interests of the company and its shareholders
- The cancellation is subject to approval by at least 75% of shareholders at a general meeting
- If approved, the company intends to re-register as a private limited company and adopt new articles of association
- The company will make arrangements for a secondary market trading facility to allow shareholders to trade their shares after the cancellation
- There will be changes to the Board, with the non-executive chairman, non-executive directors, and one executive director stepping down
Summary
Gusbourne PLC, the premium English still and sparkling wine producer, has announced plans to cancel the admission of its ordinary shares to trading on AIM. The Board believes the cancellation is in the best interests of the Company and its Shareholders, citing the considerable cost and regulatory burden associated with maintaining the AIM listing. The Company intends to implement a secondary market trading facility to allow Shareholders to buy and sell shares following the cancellation.