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21 Apr 2011 16:07
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
21 April 2011
CANCELLATION OF TRADING IN ENOVA SYSTEMS, INC. SHARES ON AIM (UK) AND MAINTAINING OF LISTING ON NYSE AMEX (US)
Enova Systems, Inc. ("Enova" or "the Company"), a leading developer of proprietary hybrid electric and all-electric drive systems and drive system components for the emerging green commercial vehicle market, today announces that it has resolved to notify the London Stock Exchange, pursuant to Rule 41 of the AIM Rules, of its intention to cancel the admission of its Ordinary Shares to trading on AIM, subject to the passing of a resolution at its forthcoming Annual Meeting of Shareholders ("Annual Meeting") which is expected to be convened on 21 June 2011. A Circular containing the notice at the Annual Meeting and related materials will be delivered to all shareholders of the Company in due course and a further announcement will be made once these have been posted.
The Company intends to file today for review by the US Securities and Exchange Commission ("SEC") its Proxy Statement which gives notice of the Annual Meeting and the Cancellation. A copy of the proxy statement can be viewed on the SEC's website at www.sec.gov.
Reasons for Delisting
The Company believes that the low volumes of shares traded on AIM do not justify the costs associated with maintaining an AIM dealing facility and that the money saved could be better utilised in running the business.
The Company's board estimates that Enova spends approximately $184,000 per year on maintaining the listing of its common stock shares on AIM, including complying with disclosure and regulatory requirements that are largely duplicative of those that Enova is required to comply with as a U.S. public company. Furthermore, matters relating to maintaining the admission of our common stock to AIM consume a large amount of management time.
In light of the foregoing and the need to conserve the Company's liquidity as a result of the unprecedented instability in the global financial markets and the general slowdown in the overall economy, Enova's board has determined that the additional costs associated with maintaining a second listing on AIM is inappropriate and that it is in the best interests of the Company to cancel the admission of its shares of common stock to trading on AIM.
Effect of Delisting
Enova will continue to maintain liquidity of its shares through its NYSE Amex Listing. Holders of the Company's shares would therefore be able to effect trades on NYSE Amex following the cancellation.
Subsequent to the de-listing of the Company's common stock from AIM, the Company would continue to be subject to the disclosure and reporting requirements under the Securities Exchange Act of 1934, including the requirement to file periodic and current reports with the SEC. In addition, the Company would continue to be required to comply with the corporate governance listing standards of the NYSE Amex.
Accordingly, the Company believes that it is in the best interests of the shareholders, subject to SEC and shareholder approval, to seek cancellation of its AIM admission at the earliest opportunity. The Company has, therefore, separately notified the London Stock Exchange of its preferred date for the cancellation, of Thursday, 30 June 2011.
Annual Meeting
In addition to the proposed resolution to approve cancellation of Enova's AIM admission, the notice of the Annual Meeting sets forth proposals to re-elect Messrs Richard Davies, John J. Micek, Edwin O. Riddell, Roy S. Roberts, Michael E. Staran and John R. Wallace as directors of the Company and to ratify the Audit Committee's selection of PMB Helin Donovan LLP as the Company's principal registered independent auditors
For further information please contact:
Enova Systems, Inc. Tel: +1 310 527 2800
Mike Staran, President and Chief Executive Officer
John Micek, Chief Financial Officer
Investec Tel: +44 (0)20 7597 5970
James Grace
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