(Alliance News) - Scirocco Energy PLC on Wednesday proposed cancelling its trading of ordinary shares on the Alternative Investment Market, noting unsustainable associated associated costs of its listing.
The investment firm, focused on European sustainable energy assets, said it believed the economic benefits of re-registering as a private limited company will outweigh the advantages of remaining listed in the London market.
Scirocco Energy shares fell 5.5% to 0.26 pence each in London on Wednesday morning.
"The considerable cost and management time and the legal and regulatory burden associated with maintaining the company's admission to trading on AIM are, in the board's opinion, disproportionate to the benefits", Scirocco Energy said.
The company estimates that its removal from AIM will reduce recurring administrative and adviser costs by at least GBP200,000 per year.
Scirocco Energy advised its shareholders to consider selling their interests in the market, if shareholders are unwilling to hold ordinary shares in the event that the cancellation is approved. The proposed last day of trading will be May 16.
The decision is conditional on the approval of at least 75% of shareholders at the general meeting on May 7.
By Emily Parsons, Alliance News reporter
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Scirocco Energy (SCIR)