Ludorum Plc

15 December 2014

Cancellation of admission of Ordinary Shares to trading on AIM

Ludorum Plc ("Ludorum" or the "Company") announces that its Board has resolved to recommend to shareholders the cancellation of the Company's admission to trading on AIM.

After careful consideration, the Directors have concluded that it is no longer in the interests of the Company to retain its admission on AIM ("Admission") and, accordingly a proposal to cancel Admission should be put to its shareholders ("Shareholders")in General Meeting (the "Cancellation").

The factors taken into consideration by the Directors in reaching the conclusion above include:

·      there has been a significant fall in the Company's share price which, in the opinion of the Board, is not justified by the Company's performance or prospects;

·      like many other small listed companies, Ludorum suffers from a lack of demand for its shares and, in practical terms, a small free float. As a result, the Board believes that there is currently no reasonable prospect of the Company being able to use the listing to raise money from other investors;

·      the low liquidity in the Company's shares tends to lead to a volatility in the share price which the Board believes may distort any objective assessment of the Company's value;

·      the Board believes that, in the light of the above, the costs associated with the listing are not justified as being in the best interests of the Company or its shareholders.

Whilst the Board believes that the Cancellation is in the interests of the Shareholders as a whole, it recognises that the Cancellation will make it more difficult for Shareholders to buy and sell Ordinary Shares should they wish to do so. Accordingly the Board intends to set up a matched bargain settlement facility to enable Shareholders to trade their Ordinary Shares, and further notification will be made once this is implemented. Under this facility, it is intended that Shareholders or persons wishing to trade will be able to leave an indication that they are prepared to buy or sell at an agreed price. In the event that the matched bargain settlement facility is able to match that indication with an opposite buy or sell instruction, both parties will contacted to effect the bargain.

The Company will in due course post a circular to Shareholders (the "Circular") convening a general meeting of Shareholders ("General Meeting") at which the Cancellation will be considered and put to a vote of Shareholders.  The Circular will contain further information on the background to and the reasons for the Cancellation and explain why the Board considers the Cancellation to be in the best interests of the Company and its Shareholders as a whole. 

Under the AIM Rules the Cancellation can only be effected by the Company after the passing of a resolution of the Shareholders in a general meeting passed by a majority of not less than 75 per cent. of the votes cast, and the expiry of a period of twenty business days from the date upon which notice of the Cancellation is given in accordance with the AIM Rules.  In addition, a period of at least five business days following the passing of the resolution approving the Cancellation is required before the Cancellation may be put into effect.  The notice of Cancellation was submitted to the AIM team on 15 December 2014 and, subject to the Cancellation resolution being passed by the requisite majority, it is expected that the Cancellation will become effective from 7.00 a.m. on 15 January 2015.

Enquiries

Ludorum plc                                                    020 8939 6280

Rob Lawes       

Investec Investment Banking (NOMAD)            020 7597 4000

David Flin

Andrew Pinder