Circle Property plummets as confirms AIM cancellation

(Alliance News) - Circle Property PLC shares plunged on Wednesday, after it said it will delist on May 31 and will return 4 pence per share to investors.

Circle Property is a London-based buyer, developer and manager of regional office assets in UK. Its shares were down 67% to 3.30p each in London on Wednesday morning.

Circle Property confirmed its final day of trading will be May 31, as it prepares to cancel its AIM listing.

"Maintaining the company's admission to trading on AIM requires significant management time, legal and regulatory obligations and comes with material financial costs (such as professional fees, London Stock Exchange fees and other costs associated with being an AIM-traded company)," the firm explained.

The directors maintained these costs are "disproportionate" to the benefits the company receives from its AIM listing.

Circle currently holds around GBP3.2 million in cash, and plans to distribute a "modest" final return to shareholders of no more than GBP1.1 million, or 4p per share. The rest will be used towards costs and incentive payments to its executives.

The company said it has already completed two returns of capital via B share issues to shareholders, totalling about GBP62.2 million in March and about GBP16.1 million in April.

"As soon as possible following the cancellation and the final return of capital, it is the board's intention to liquidate the group solvently," Circle says.

Earlier this month, Circle Property said it had completed the sale of its final remaining asset, 300 Pavilion Drive in Northampton, England to Portman Finance Group Ltd for GBP2.9 million.

By Sophie Rose, Alliance News reporter

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