LONDON (Alliance News) - AfriAg PLC shares plummeted on Monday after it said it has sent a circular to shareholders outlining proposals to delist its shares trading from AIM, leaving the company with a listing only on the IDSX Growth Market.
AfriAg shares were trading down 23% to 0.150 pence per share on Monday afternoon.
The company will hold a general meeting on February 24, and said its operations would resume as normal if approved.
AfriAg's shares are currently dual-listed on AIM and the IDSX, but the company said given the size and stage of development of the company that the IDSX "provides shareholders with the most appropriate listing platform on which to promote the company's growth," it said in a statement.
"The ISDX Growth Market provides shareholders with a similar trading facility to that offered by AIM and following cancellation, shareholders will be able to continue trading their ordinary shares in the company without interruption," said AfriAg.
"The board have noted that in the three months that the ordinary shares have been dual listed on AIM there has been an increasing volume of the number of ordinary shares traded using ISDX," it added.
AfriAg believes it will also save between GBP30,000 to GBP40,000 per year by cancelling its listing on AIM.
The company does not plan to change its strategy or operations if shareholders approve the proposal, meaning it will continue to expand its investments and operations in Southern Africa.
"The directors are also considering various strategic options for the further development of the company following the cancellation, details of which will be provided to shareholders directly," the company added.
The company intend to seek to acquire a direct and/or an indirect interest in businesses involved in agriculture generally and the production, processing, logistics and distribution of agricultural produce. The company will initially focus on opportunities in Europe, Africa and the Middle East but will consider possible opportunities anywhere in the world.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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