Business
Proposed Cancellation of Admission to Trading On AIM
Vancouver, BC / ACCESSWIRE / July 7, 2014 / EastCoal Inc. (NEX: ECX.H, AIM: ECX) (" EastCoal "...
About this update from Cotec Holdings Corp
[{"type":"text","content":"Proposed Cancellation of Admission to Trading On AIMVancouver, BC / ACCESSWIRE / July 7, 2014 / EastCoal Inc. (NEX: ECX.H, AIM: ECX) (\"EastCoal\" or the \"Company\") announced on June 23, 2014 that the Company intended to seek shareholder approval for the cancellation of the Company’s Admission to AIM (the \"Cancellation\").\nThe Company is due to hold a combined Annual General Meeting and Special Meeting on July 30, 2014 (the \"2014 AGM\"), at which, inter alia, shareholders will be asked to consider a special resolution to approve the Cancellation. \nReasons for the Cancellation of Admission to AIM\nThe board of directors of the Company (the “Board”) have identified the following reasons for the Cancellation, which they consider to be in the long-term best interests of the Company and EastCoal shareholders:\nThe high costs of maintaining the Company’s Admission to AIM.\nThe Company considers the costs associated with maintaining the Company’s Admission to AIM are excessive when considered alongside the costs of maintaining the Company’s listing on TSX Venture Exchange’s trading board NEX (“NEX”) in Canada. At this time, the Board has concluded that maintaining a second listing on AIM is inappropriate.\nThe need to maintain appropriate liquidity of EastCoal stock.\nWith the Company’s listing on NEX, the Board is concerned that there may not be enough liquidity for EastCoal shares to support trading on both NEX and AIM. The Board believes it is in the best interests of the Company and its shareholders to focus the trading of EastCoal shares on NEX.\nThe operational and legal difficulties of being subject to two different regulatory regimes in two different countries, in order to maintain listings on both AIM and NEX.\nThe Company currently has to comply with the regulatory, reporting and corporate governance requirements of two exchanges in two different countries, whose requirements are sometimes different and/or inconsistent. The Board believes that it is best to remove the requirement of compliance with two different exchanges, as it believes that compliance with one exchange would still supply EastCoal shareholders with proper governance and protection.\nThe management time taken up with the Company’s Admission to AIM.\nThe ongoing regulatory requi...