LONDON (Alliance News) - Greka Engineering & Technology Ltd Friday said it has decided to follow through with its plan to delist from AIM and said shareholders will be able to vote on the proposal next month.
Greka Engineering revealed it was considering cancelling its shares from AIM late last month but has now confirmed it will hold an extraordinary general meeting on June 7 to put forward the proposal to shareholders.
The main reason for wanting to delist from AIM is costs, but Greka Engineering has also noted the "lack of meaningful liquidity" and the "poor" performance of its shares since listing in 2013.
"The ongoing costs associated with maintaining the listing on AIM are high relative to the company's market capitalisation and there is a significant administrative and regulatory burden involved in admission to AIM," said the company.
"Accordingly, the board has concluded that it is no longer in the interests of the company or its Shareholders as a whole for the ordinary shares to remain traded on AIM," the company added.
At least 75% of the vbotes cast at the upcoming EGM will have to be in favour of the proposal for its to be carried.
Greka Engineering's Chairman, Randeep Grewal, will still be in the AIM market even if the company delists from AIM, as he is also the Chairman and Chief Executive of both Greka Drilling Ltd and Green Dragon Gas Ltd.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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