Global Market Group Ltd Cancellation of Admission to Trading on AIM (0232A)

TIDMGMC

RNS Number : 0232A

Global Market Group Ltd

23 September 2015

Global Market Group Limited

("Global Market" or the "Company")

Cancellation of Admission to Trading on AIM

Global Market regrets to advise that, pursuant to AIM Rule 1, the Company's shares will be cancelled from trading on AIM ("Cancellation") at 7:00 a.m. on 24 September 2015 as the Company was unsuccessful in its efforts to appoint a replacement nominated adviser ("NOMAD").

Following the resignation of the previous NOMAD, the Company acted immediately to identify a replacement NOMAD. However, there proved insufficient time for the new NOMAD to complete the required due diligence within the one month time frame permitted under AIM Rule 1 to avoid Cancellation.

The Directors of the Company greatly regret both the initial suspension during August 2015 and the delisting that has now occurred as a direct result of that event.

The Directors wish to stress that the initial suspension occurred as a result of inter-related events stemming from the announcement on 10 August 2015 concerning a very positive property deal ("the Transaction") that involves the possible triggering of Reverse Takeover provisions under AIM rules. The Company further announced details of the Transaction on 21 August 2015. This included details of the auction timeline for the Transaction set by the Guangzhou Provincial Government, as a result of which the Company was unable fully to comply in time with the information requests of the former NOMAD, which then felt obliged to resign. The Directors had conducted full due diligence on the property deal, which will enable the Company to acquire an ownership interest in a high-profile corporate headquarters building in Guangzhou Province's new Pazhou e-commerce centre, and believe it is in the best interests of the Company. The property deal comprises complex third-party arrangements that avoid any financial liability for the Company's shareholders, and needed to meet the tight completion timetable in order to lock in the benefit of highly favourable land-pricing terms offered by the Guangzhou Provincial Government. The Directors of the Company are fully committed to compliance requirements, and are devoting extensive internal resources towards working with the AIM team with the objective of achieving an early relisting of the Company's shares.

The Transaction is classified as a Reverse Takeover (RTO) under the AIM Rules. For any RTO, cancellation and re-admission of a company's shares is a necessary part of the process, and Directors are confident that upon completion of the RTO process, shareholder value will be enhanced.

The Directors of the Company are fully committed to maintaining the high compliance standards required of public companies and will be devoting extensive internal resources to achieve an early relisting of the Company's shares.

The Company announced on 15 September 2015 the results of a successful RMB53.5 million fundraising for its main B2B operating subsidiary Global Market Group (Guangzhou) Limited ("GMGZ"), in which it indirectly owns 99.98% of the equity. The fundraising implied a valuation of approximately GBP183 million for GMGZ.

Finally, the Company reports that in the H1 2015 the Company returned to profitability, albeit on lowered sales, following an extensive strategic repositioning exercise started during 2013. Against a backdrop of challenging global economic conditions, the Directors are confident the Company is now positioned for future growth in the rapidly developing cross-border and domestic e-commerce markets.

Shareholders are advised that, during the period following Cancellation until the listing is restored, the Company intends to provide updates via its website at www.globalmarket.com, and via RNS Reach.

For further information, please visit www.globalmarket.com or contact:

David Ling/ Cheandy Hu/ Mophy Fan

Global Market Group Limited: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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September 23, 2015 12:34 ET (16:34 GMT)