Trading in Gable Holdings' shares has been suspended on AIM following the resignation of its nominated adviser Zeus. The group's two remaining non-executive directors, Blaise Craven and Kevin Alcock, have also resigned.
Gable intends to delist from AIM and believes greater shareholder value should ultimately be derived outside of the public domain.
Gable said that in reaching this conclusion, the board also considered:
- the costs associated with maintaining the AIM quotation (such as legal, accounting, broking, London Stock Exchange and nominated adviser costs) are disproportionately high when compared to the benefits, and the directors consider that these funds could be better utilised in operating the restructured business
- the management time and the legal and regulatory burden associated with maintaining the company's admission to trading on AIM, and meeting the AIM Rules and related regulatory requirements (including reporting, disclosure and corporate governance requirements) would be disproportionate to the anticipated future operational activities
- the relatively small proportion of shares in free float together with low trading volumes make the stock illiquid for any meaningful shareholding negating the benefits normally associated with a listing on AIM.
The company intends to offer a matched bargain system for shareholders that express an interest in trading the shares post delisting.
The company has previously announced that, in the absence of a significant cash injection, it would have to significantly downsize or stop its operations. The group ceased writing new business (other than that it was already contractually obliged to honour) with effect from 15 July.
It says good progress has been made regarding securing alternative capacity for the group's renewal book and it is in advanced discussions with a global carrier to provide that cover with effect from 1 October.
Chairman and chief executive William Dewsall said: "I am extremely encouraged by the progress of discussions regarding future capacity and on changes made as a result of our strategic review announced in July. The delisting process forms a vital part of the cost cutting measures which were identified but, I am sure, will benefit the ultimate outcome of our plan."
(LON:GAH) Gable Holdings Inc share price was 0p at 2p