Tethyan Resources PLC reports that its ordinary shares commenced trading on the TSX Venture Exchange (“TSXV”) on September 6, 2017. Consequently the board of directors of Tethyan has resolved to proceed with the following, subject to shareholder approval by at least 75% of those who vote, in accordance with AIM Rule 41.
Proposed Delisting from AIM
Following its admission to TSXV the Company undertook a strategic review process assessing the viability of its ongoing quotations on both AIM and the TSXV. The Board is confident that trading on the TSXV will provide a healthy platform for trading and that the added benefit of continued trading on AIM is outweighed by the regulatory burden and cost associated with maintaining the listing on AIM.
The Board has now taken the decision that, in light of the additional cost and regulatory burdens imposed upon the Company by having two quotations, it will seek a delisting from AIM.
The Company has taken this decision in light of extremely challenging macro conditions and in order to further reduce its ongoing costs. Shareholders will still be able to trade the Company’s shares on the TSXV. The Company is also providing this advance notice to shareholders to help allow those UK based investors who do not wish to trade their shares on TSXV to trade their shares on AIM ahead of the delisting.
Pursuant to the proposed consolidation, the 168,182,052 existing ordinary shares (“Existing Ordinary Shares”) of the Company will be consolidated on the basis of 1 new ordinary share (“New Ordinary Shares”) for each 6 Existing Ordinary Shares. Such New Ordinary Shares will have the same rights and be subject to the same restrictions (save as to par value) as the Existing Ordinary Shares (“Consolidation”).
Upon completion of the Consolidation, the Company will have approximately 28,000,000 New Ordinary Shares. The Board considers that the current issued share capital is considerably higher than similar sized companies listed on TSXV and it believes that this affects negatively investors’ perception of the Company.
Accordingly, the Consolidation is being proposed in order to reduce the number of Existing Ordinary Shares that are in issue to a level more in line with comparable TSXV listed companies. The Board believes that the Consolidation may improve the liquidity and marketability of the Company’s shares to a wider range of investors, including institutional investors and that the Consolidation will make the New Ordinary Shares a more attractive investment proposition.