LONDON (Alliance News) - Greka Drilling Ltd on Monday said it will seek shareholders' permission to de-list its shares from the London AIM at an extraordinary general meeting.
Shares in Greka closed down 13% at 1.00 pence on Monday afternoon.
The meeting is to take place on October 17, with the de-listing effective from October 30. The Asia-focused gas drilling company justified the move saying that its market capitalisation is "well below" the level at which it floated in 2011.
Further to this, Greka also said that the ongoing costs of maintaining an AIM listing are high relative to its market capitalisation, and that its shares suffer from a lack of liquidity.
Greka added that it has a "limited scope" for new share issues, either to raise money or fund an acquisition, due to the significant share dilution such an issue would have.
Greka announced its intention to de-list in its half year report, which was released on Friday and showed that the company's pretax loss had widened to USD3.3 million from USD1.3 million last year after its Indian operations came to a standstill.