(Alliance News) - iEnergizer Ltd said on Friday called a meeting of shareholders to approve the cancellation of shares from trading on AIM.
iEnergizer shares were down 79% at 63.80 pence each in London on Friday morning.
The Noida, India-based IT service management firm said the meeting will take place on May 16.
Compliant with AIM requirements, the cancellation is conditional upon the approval of at least 75% of votes from shareholders, iEnergizer said.
iEnergizer believes staying on the stock exchange is "unlikely to provide the company with significantly wider access to capital", adding that that the cost and legal implications of maintaining its admission to trading on AIM are "disproportionate" to the benefits.
The company also noted that the quotation of ordinary shares on AIM does not offer investors to trade in "meaningful volumes or with frequency", considering that EICR (Cyprus) Ltd holds a 82.74% stake, leaving little free float.
iEnergizer said shareholders will be able to continue to trade in shares on AIM prior to the cancellation.
By Sabrina Penty; Alliance News reporter
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