Taihua's shares dive almost 40% on AIM cancellation proposal
Shares in Taihua dived almost 40% on its proposal for cancelling its AIM listing and taking the company private.
FTSE AIM All-Share
755.28
17:14 26/04/24
Pharmaceuticals & Biotechnology
22,773.26
16:59 26/04/24
Taihua
0.88p
16:29 05/05/17
The proposal required shareholder approval, which was being sought at a general meeting called for 21 April.
The traditional Chinese medicinal company said its board believed the costs of admission to AIM were greater than any benefits that currently accrued to the company or its shareholders.
"The admission should therefore be cancelled as it is no longer in the best interests of the Shareholders as a whole," the company said in a statement.
Taihua added that once trading on AIM had ceased it would be easier to operate as a private limited company than as a public limited company.
Therefore it was also proposed the company should re-register as a private limited company.
"This will save a small amount of money on annual running costs and will also allow future corporate actions to be undertaken in a more straight forward and cost effective manner due to the more flexible regime which applies to private companies under the Companies Act."
At 12:25 GMT, shares in Taihua were down 39.25% to 1.62p each.