Imagelinx, which puts companies' logos onto printed packaging, has announced that it no longer feels it is in the best interest of the company to remain on the AIM index and so intends to cancel its admission.
The decision was based on the fact that over 70% of the issued ordinary shares are held by seven investors, meaning there is a lack of liquidity in trading volume of the shares. As a result the directors do not consider AIM to provide a "meaningful trading platform for investors".
It has also factored in the "significant" professional fees associated with the admission and the "disproportionate length of time spent by senior management to ensure compliance with the AIM Rules and other related regulatory requirements including corporate governance, reporting and disclosure obligations".
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In a statement the firm said: "There are "alternative established trading platforms in place which provide a forum for investors to trade shares on a matched bargain basis.
"The directors estimate that the cost saving which will be achieved from the cancellation will total approximately £100,000 per annum. After careful consideration, the board believes it is in the best interests of the company and shareholders generally to seek the cancellation at the earliest opportunity."
NR
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