Business
Proposed Cancellation of Company's Shares on AIM
Proposed Cancellation of Company's Shares on AIM.
About this update from Inspiration Healthcare Group Plc
[{"type":"text","content":"\n \nRNS Number : 7865V India Hospitality Corp. 18 January 2012 \n \n\n \nIndia Hospitality Corp.\n(\"IHC\" or the \"Company\")\n \nPROPOSED CANCELLATION OF THE ADMISSION OF THE COMPANY'S SHARES TO TRADING ON AIM\n \nINTRODUCTION\n \nThe Company announces that it intends to seek a cancellation of the admission of its ordinary shares (the \"Shares\") to trading on AIM.\n \nBACKGROUND TO AND REASONS FOR THE PROPOSED DELISTING\n \nThe Shares have been admitted to trading on AIM since 1 August 2006. The principal reason for seeking admission of the Shares to trading on AIM had been to provide IHC with an increased ability to access capital in order to fund its acquisition strategy. On 19 December 2011 the Company announced that it had received notification from gateGroup Investments Singapore Pte Ltd of its intention to exercise its call option to acquire the remaining 26% of the shares in Skygourmet Catering Private Limited held by the Company's wholly owned subsidiary, IHC Mauritius. Following this, the directors of the Company (the \"Directors\") have undertaken a review of the advantages and disadvantages of maintaining a listing and have concluded that admission of the Shares to trading on AIM should be cancelled (the \"Delisting\"). In particular, the Directors noted that:\n \n- given historical trading activity in the Shares, the Directors do not believe that admission to trading on AIM provides the opportunity to investors to trade in meaningful volumes;\n- the ability of the Company to effect a significant acquisition quickly will be compromised by the requirement under the AIM Rules to produce a re-admission document and to seek shareholder approval for a reverse takeover (as defined under the AIM Rules);\n- the trading price of the Shares and prevailing market conditions suggest that there is no prospect of raising additional capital on AIM at a valuation that will be acceptable to existing investors; and\n- in light of the above, the ongoing expense and management time involved in maintaining the admission of the Shares are not justifiable.\n \nFUTURE STRATEGY\n \nFollowing its divestment of SkyGourmet, the Company is now focused around building its future in...