Firestone Diamonds has decided to delist from London’s AIM and reduce the size of its board following a review of the company’s costs and expenses. It said the benefits and challenges of maintaining its listing on AIM are no longer in the best interests of the company and its shareholders.
“The need to preserve cash by all means possible to ensure the company survives the current market downturn is the overriding principle for the board and will include a review of operations, corporate structure and overheads including the composition of the board,” said Firestone.
The company said it was suffering from a lack of liquidity in trading of its ordinary shares due to the bondholders holding 65% of the issued ordinary share capital, and in addition, two minority shareholders hold about a further 18%.
This, combined with the poor diamond market and general negative sentiment towards the sector, had resulted in a material share price and consequent market capitalisation decline.
It said although the diamond market had the potential to improve, it will now take longer than had been previously anticipated.
Meanwhile, Firestone said that it was the company's intention to rationalise the board so that its composition is more appropriate for its current activities.
“It is the company's current intention that the board will consist of no less than four directors, including an independent chair,” said Firestone.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
