Proposed Delisting
22 January 2010 - 7:01PM
UK Regulatory
TIDMLTW
RNS Number : 9709F
London Town PLC
22 January 2010
NOT FOR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR
ANY OTHER JURISDICTION IF TO DO SO WOULD CONSTITUTE A VIOLATION OF THE LAWS OF
SUCH JURISDICTION
London Town PLC ("London Town" or the "Company")
Proposed Delisting from AIM of the London Stock Exchange
London Town (AIM: LTW) today announces that it is proposing to cancel the
admission to trading on AIM of its ordinary shares (the "Delisting").
The Company has today published and sent to all holders of ordinary shares in
the Company (the "Shareholders") a circular setting out further details of the
Delisting and the implications for Shareholders (the "Circular"). The Circular
will also contain a notice convening a general meeting on 8 February 2010 at
8:30 a.m. (the "General Meeting") at which the approval of Shareholders of the
Delisting will be sought. It is anticipated that trading in the ordinary shares
on AIM will cease at close of business on 18 February 2010 and cancellation of
admission to trading on AIM of the Ordinary Shares will become effective at 7:00
a.m. on 19 February 2010.
Reasons for the Proposed Delisting
The Board has conducted a review of the benefits and disadvantages to the
Company in continuing to be admitted to trading on AIM and the following factors
were taken into account during their review:
* the Board believes that the costs and regulatory requirements associated with
maintaining the Company's admission to trading on AIM are a significant burden
on the Company's financial resources and is not enjoying any of the benefits
which might otherwise be expected to arise as a result of its admission to
trading on AIM; and
* the Board continues to have constructive discussions with the Bank to explore a
number of potential solutions to the significant net asset deficiency as shown
on the latest published balance sheet of the Company. However, the Board now
believes that any such solution is likely to permanently erode the prospect of
any future value attaching to the economic interest of the existing Ordinary
Shares in the Company.
The Directors strongly believe that for the reasons referred to above, the
Company should seek the cancellation of the admission of its ordinary shares to
trading on AIM.
The Delisting
Rule 41 of the AIM Rules requires an AIM company wishing the London Stock
Exchange to cancel 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 twenty business days prior to such date.
The cancellation is conditional upon consent of not less than 75 per cent. of
votes cast by Shareholders at the General Meeting. Such consent will be sought
at the General Meeting. The time of the General Meeting and the principal
effects and timing of the cancellation are set out in the Circular. The Company
has received irrevocable undertakings from shareholders together holding
20,090,757 ordinary shares, representing 68.37 per cent of the current issued
ordinary share capital of the Company, to vote in favour of the De-listing.
Upon the Delisting becoming effective, Cenkos Securities plc will cease to be
nominated adviser to the Company and the Company will no longer be required to
comply with the AIM Rules.
Following the Delisting
Following the Delisting, there will no longer be a formal market mechanism
enabling the Shareholders to trade their shares through the AIM market and the
CREST facility will be cancelled.
Enquiries:
Nicholas Wells/Max Hartley
Cenkos Securities plc 020 7397 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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