Proposed Cancellation of Admission to AIM
September 23 2009 - 2:00AM
UK Regulatory
TIDMAOI
RNS Number : 4992Z
AOI Medical, Inc.
23 September 2009
AOI MEDICAL, INC.
Proposed Cancellation of Admission to AIM and
Notice of Special Meeting
LONDON, ENGLAND, September 23, 2009. AOI Medical, Inc. ("AOI Medical" or the
"Company") (AIM:AOI) today announced that the Company is seeking Shareholder
approval to cancel the admission of its common shares of US$0.0001 per value per
share ("Common Shares") to trading on AIM.
Introduction
The Company is seeking Shareholder approval to cancel the admission of its
Common Shares to trading on AIM at a Special Meeting which will be held on
October 9, 2009. A circular, together with a notice of the Special Meeting, have
today been posted to Shareholders. A copy of the circular will shortly be
available on the Company's website at www.aoimedical.net.
Reasons for De-Listing the Common Shares
Notwithstanding the continuing progress in the Company's business, for some time
there has been very little liquidity in the Common Shares and, as a result, when
even very small numbers of shares have been sold, the Company´s share price has
declined significantly. As a result, it is difficult for shareholders to sell
shares at a reasonable price and in reasonable volumes. The current economic
turmoil has led to significant falls in the values of global stock markets, from
which the Company is not immune. The susceptibility of the share price to the
wider general equity market conditions is not to the benefit of the business and
in particular hampers the Company's ability to raise funds. These problems are
not confined to AOI Medical. Many other small companies suffer from a lack of
liquidity in their shares and a consequential adverse impact on their share
prices.
The Company calculates the direct and indirect costs of staying on AIM to be in
excess of GBP200,000 per annum. This estimate takes no account of the
considerable senior executive time which is spent dealing with issues related to
its listing on AIM. In the current financial climate the Company's strategy is
to continue to prepare for the commercial launch of its products. In order to
achieve this objective, the Company is determined to conserve its existing cash
resources and has concluded that the benefits of maintaining the listing on AIM
do not justify the costs.
As a result, the Board have concluded that the benefits of maintaining a listing
on AIM are out-weighed by the costs incurred in maintaining such a listing and
that the Company derives little benefit in terms of the liquidity in its shares
or in the ability to raise new capital.
In addition, the Board does not believe that the market places an appropriate
valuation on the Company or the Common Shares.
Special Meeting
Under the AIM Rules for Companies, it is a requirement that any cancellation of
admission to trading must be approved by not less than 75 per cent. of votes
cast by Shareholders in general meeting. Accordingly a Notice of Special Meeting
has today been posted to Shareholders which contains a resolution to approve the
application to London Stock Exchange for cancellation of admission of the Common
Shares on AIM. The Special Meeting will be held at The Capital City Club,
7 Harris Street NW, Atlanta, Georgia 30303 USA, commencing at 10:00 a.m.
(Atlanta time) on October 9, 2009. If approved it is expected that cancellation
of admission of the Common Shares will take effect from 7.00 a.m. BST on October
21, 2009.
Directors' recommendation
The Directors consider that the proposals are in the best interests of the
Company and the Shareholders as a whole and are most likely to promote the
long-term success of the Company for the benefit of the Shareholders as a whole.
The Directors unanimously recommend that the Shareholders vote in favour of
cancellation of admission of the Common Shares on AIM as they intend to do in
respect of their aggregate shareholdings of 164,555 Common Shares, equivalent to
approximately 1.9 per cent. of the issued ordinary share capital of the Company.
The Directors have been informed that Shareholders with aggregate shareholdings
of 4,474,952 Common Shares, equivalent to approximately 52.4 per cent. of the
issued ordinary share capital of the Company, also intend to vote in favour of
cancellation of admission.
Timetable
The expected timetable of principal events is shown below:
+-----------------------------------------------+-----------------------------+
| Latest time and date for receipt of proxies | 5.00 p.m. London time, |
| for Special Meeting | October 7, 2009 |
+-----------------------------------------------+-----------------------------+
| Special Meeting | 10.00 a.m. Atlanta |
| | time, October 9, 2009 |
+-----------------------------------------------+-----------------------------+
| Expected date of cancellation of admission of | 7.00 a.m. London time, |
| Common Shares on AIM if the resolution at the | October 21, 2009 |
| Special Meeting is passed | |
+-----------------------------------------------+-----------------------------+
Background to AOI Medical, Inc.
AOI Medical is a medical device company focusing on the development and
commercialisation of innovative orthopaedic medical devices for the spine and
trauma markets. It is progressing the development of three separate technology
platforms: Ascendx(TM) VCF Reduction System, BAMF Trauma and Cervical Plate.
Further information can be found at www.aoimedical.net.
Enquiries:
Numis Securities Limited
Nominated Adviser: Michael Meade / Brent Nabbs Tel: +44 (0)20 7268 1000
Corporate Broking: David Poutney
This information is provided by RNS
The company news service from the London Stock Exchange
END
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