JOHANNESBURG (miningweekly.com) – Days after listing on the TSX-Venture Exchange, and following a strategic review, Tethyan Resources is planning to delist from the London bourse’s Aim to reduce the additional cost and regulatory burden of maintaining two listings.
Tethyan commenced trading on the TSX-V on September 6, following which it assessed the viability of its ongoing quotations on both exchanges and concluded that any added benefit of continued trading on Aim was outweighed by the regulatory burden and cost associated with maintaining that listing.
“The company has taken this decision in light of extremely challenging macro conditions and to further reduce ongoing costs,” said Tethyan CEO and director Peter Mullens, who was confident that the replacement TSX-V listing would provide a healthy platform for trading.
“The TSX-V listing is a milestone for Tethyan and represents an opportunity to introduce the new face of our company to existing and prospective investors,” he said in a statement on Friday.
Further, the company proposed the consolidation of some 168.18-million existing ordinary shares on the basis of one new ordinary share for each six existing ordinary shares, the conclusion of which will leave the company with about 28-million new ordinary shares to bring it to an issued shared capital level more in line with comparable TSX-V-listed companies.
“The board considers that the current issued share capital is considerably higher than similar-sized companies listed on the TSX-V and believes that this affects negatively investors’ perception of the company,” he explained, pointing out that the consolidation may improve the liquidity and marketability of the company's shares to a wider range of investors.
“The board of directors of Tethyan has carefully considered these proposals and strongly believes that this is the right time to pursue these initiatives,” said Mullens.
“We are eager to move forward with our plans and look forward to receiving shareholder and regulatory support for our recommendations,” he concluded.