CAMBRIA Africa, whose major investments are domiciled in Zimbabwe, plans to delist on the AIM market of the London Stock Exchange, amid low trading volumes in the company’s share.
The plan requires shareholder approval at an annual general meeting slated for this month.
The company’s shares have been suspended on the bourse since March after Cambria failed to release its financial results for the year ended August 2023 and for the six months ended February 2024.
If the delisting is approved, the cancellation will take place in mid-October 2024.
In a statement, Cambria said it expected to publish its results on or around September 30, 2024, a move which lifts the suspension of trading.
This will also provide shareholders with an opportunity to trade their shares on AIM before the cancellation becomes effective.
“The board has undertaken a review of the company’s position and future prospects, including the benefits and drawbacks to the company retaining its admission on AIM. The board has concluded that it should recommend to shareholders that a cancellation is in the best interests of the company and its shareholders,” Cambria said.
“The company intends to return up to US$5,4 million (US¢ 1,00 per share or c.0.76 pence) to shareholders in two tranches, as it receives the expected payments at the holding level. The final distribution will be determined by the proposed sale of assets as outlined below and there can be no guarantee of the proceeds to be received or that they will all be realised.”
Cambria is presently holding cash and cash equivalents of US$3,3 million and property assets of US$2,5 million outside Zimbabwe.
In Zimbabwe, the company holds assets equivalent to US$2,67 million.
While it has a positive cash flow in Zimbabwe, its earnings from loan management and payroll operations have been significantly impacted by the depreciation of the local currency.
“In reaching this conclusion, the board has considered the following key factors: permanent cost savings to be achieved by the cancellation, discount to NAV of the company’s share price, the free float of the company is only c.30%, resulting in low trading volumes and significant illiquidity, preventing shareholders from achieving the best value for their shares, the company has not utilised its admission on AIM to raise fresh capital or issue paper consideration to fund acquisitions since 2018 and the administrative, legal and regulatory burden associated with maintaining the company’s admission to trading on AIM is, in the directors’ opinion, disproportionate to the benefits,” the firm said.
In the event shareholders vote against the cancellation, the company will need to appoint a new nominated adviser before 7am on October 14, 2024.
In the event that it has not appointed a new nominated adviser by this date, the company’s admission to AIM will be immediately suspended until such time as a new nominated adviser has been appointed.