Greka Drilling Regulatory News (GDL)

1 October 2018

Greka Drilling Limited

("Greka Drilling" or the "Company")

Proposed delisting and EGM

Introduction

Further to the Company's announcement of its interim results on 27 September 2018, in which it mentioned that it had decided to seek the cancellation of its listing on AIM, Greka Drilling is now announcing details of the timetable and process involved in the proposed delisting (the 'Delisting'). The Board will propose a resolution to approve the Delisting at an EGM to be held at 10.00 a.m. on 17 October 2018.

Reasons for the Delisting

The Directors have concluded that, for the reasons set out below, the costs of maintaining the Company's admission to AIM are not justified by the benefits gained from admission:

· the market capitalisation of the Company is well below the level at which it floated on AIM in March 2011 and there is limited scope for issuing new shares to fund the Company's growth or as acquisition currency due to the significant dilutive effect to shareholders;

· the Company's ordinary shares ('the Ordinary Shares') suffer from a lack of meaningful liquidity; and

· 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.

Accordingly, the Board has concluded that it is no longer in the interests of the Company or its shareholders ('the Shareholders') as a whole for the Ordinary Shares to remain traded on AIM.

Principal effects of Delisting

The principal effects that the Delisting will have on Shareholders include the following:

· there will no longer be a formal market mechanism enabling Shareholders to trade their Ordinary Shares on AIM (or any other recognised market or trading exchange);

· while the Ordinary Shares will remain freely transferable, they may be more difficult to sell compared to shares of companies traded on AIM (or any other recognised market or trading exchange);

· it may be more difficult for Shareholders to determine the market value of their investment in the Company at any given time;

· the Company will no longer be subject to the AIM Rules for Companies ('the AIM Rules') and, accordingly, Shareholders will no longer be afforded the protections given by the such rules - in particular, the Company will not be bound to: make any public announcements of material events, or to announce interim or final results; comply with any of the corporate governance practices applicable to AIM companies; announce substantial transactions and related party transactions; or comply with the requirement to obtain shareholder approval for reverse takeovers and fundamental changes in the Company's business;

· the Company will cease to retain a nominated adviser and broker; and

· the Delisting might have either positive or negative taxation consequences for Shareholders (shareholders who are in any doubt about their tax position should consult their own professional independent adviser immediately).

Notwithstanding the Delisting, the Company will continue to comply with the applicable statutory requirements and the Company's articles of association.

The Board intends to continue to maintain the Company's website (www.grekadrilling.com) and to post updates on that website from time to time, although Shareholders should be aware that there will be no obligation on the Company to include the information required under AIM Rule 26 or to update the website as required by the AIM Rules. In addition, Shareholders are reminded that as the Company is registered in the Cayman Islands, Shareholders are not afforded the protections provided by the City Code on Takeovers and Mergers.

Process for Delisting

The Delisting is conditional on the approval of not less than 75 per cent. of votes cast by Shareholders (in person or by proxy) on the resolution regarding the Delisting to be proposed at the EGM.

Furthermore, Rule 41 of the AIM Rules requires an AIM company that wishes the London Stock Exchange to cancel the admission of its shares to trading on AIM to notify such intended cancellation and separately inform the London Stock Exchange of its preferred cancellation date at least 20 business days prior to such date. In accordance with AIM Rule 41, the Directors have notified AIM of the Company's intention, subject to the resolution being passed at the EGM, to cancel the Company's admission of the Ordinary Shares to trading on AIM. Accordingly, if the resolution is passed at the EGM, the Delisting will become effective at 7.00 a.m. on 30 October 2018.

The Directors consider that the Delisting is in the best interests of the Company and its Shareholders as a whole. Accordingly, the Directors unanimously recommend Shareholders to vote in favour of the resolution to be proposed at the EGM as they intend to do in respect of their own beneficial holdings amounting to 264,919,233 Ordinary Shares (representing 66.52% of the Company's issued share capital).

Transactions in Ordinary Shares

Shareholders should note that, if effected, the Delisting will significantly reduce the liquidity and marketability of the Ordinary Shares. The Directors do not intend to provide, seek or support any arrangements whereby Ordinary Shares can be bought or sold on a matched bargain basis following the Delisting becoming effective. Accordingly, interests in Ordinary Shares are unlikely to be readily capable of sale and, where a buyer is identified, it will be difficult to place a fair value on any such sale.

Nominated adviser

The Company's AIM nominated adviser is Smith & Williamson Corporate Finance Limited ("Smith & Williamson"). Cenkos Securities plc ("Cenkos") has entered into an agreement to acquire the nominated adviser and corporate broker business of Smith & Williamson, and as a result Smith & Williamson will no longer be the Company's nominated adviser, effective 2 November 2018. As a result, in the event that the Delisting had not been approved at the EGM, the Company's shares will be suspended from trading on AIM in the absence of the appointment of a replacement nominated adviser.

Circular

A circular containing the notice convening the EGM will be sent to shareholders shortly and will also be available on the Company's website at www.grekadrilling.com.

Contacts:

For more information on Greka Drilling, please visit the Company's website at: www.grekadrilling.com.