Business
Proposed Delisting on AIM
Proposed Delisting on AIM.
About this update from Kendrick Resources Plc
[{"type":"text","content":"\n RNS Number : 3541Y Kenetics Group Limited 22 December 2010 \n \n\n22 December 2010\n \n \nKenetics Group Limited\n(\"Kenetics\" or \"the Company\")\n \nProposed Cancellation of Admission to Trading on AIM\n \nKenetics, the Radio Frequency Identification (\"RFID\") group focussed on security and RFID systems and products, today announces that it is seeking Shareholder approval for the cancellation of admission to trading on AIM of its Ordinary Shares.\n \nIntroduction\n \nKenetics' ordinary shares were admitted to trading on AIM on 18 August 2006 and for some time now the Board has been concerned that trading in the Company's shares has become progressively more limited. The reasons for the limited trading in Kenetics' shares, and those of many other small cap companies, have been widely discussed in the press and elsewhere.\n \nThe Board believes that the Company's share price does not reflect the value of the underlying business and that the Company is prevented from raising the funds required to develop its current and planned activities. As a result, the Board now announces its intention to seek the authority of Shareholders to obtain a cancellation of the Company's Ordinary Shares from trading on AIM.\n \nA General Meeting has been convened at the offices of Stephenson Harwood, One St. Paul's Churchyard, London, EC4M 8SH for 8.30 a.m. on 18 January 2011, at which Shareholders will be asked to consider, and if thought fit, to approve a Resolution in order to implement the Delisting. \n \nRationale for the Delisting\n \nThe Directors have concluded that a resolution should be put to Shareholders to approve a Delisting for the following reasons:\n \n· there is a clear lack of liquidity in the Ordinary Shares of the Company which, in the Directors' view, has contributed to the Company being undervalued on AIM;\n \n· the bid/offer spread at which a market is made in the Company's Ordinary Shares has perpetuated the lack of liquidity and the Directors believe this is unlikely to be resolved, given the size of the Company and its lack of appeal to institutional investors;\n \n· the ability to secure new equity participation at levels which fairly reflec...