Firestone Diamonds shareholders have approved the company’s plans to delist from London’s AIM.
The diamond junior recently 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 company confirms that the last day of dealings in the company's ordinary shares will be 25 March 2020 and admission to trading on AIM of the company's ordinary shares will be cancelled at 7.00am on 26 March 2020,” it said.
Image credit: Firestone
Firestone said it would put in place a matched bargain facility with JP Jenkins to assist shareholders to trade in the ordinary shares from the date of cancellation.
JP Jenkins is part of Peterhouse Capital.
The company previously said that it also wanted to reduce the size of its board following a review of the company’s costs and expenses.
Firestone 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.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
