Proposed cancellation of admission to AIM

 

TIDMORPK 
 
RNS Number : 3321J 
Orpak Systems Ltd 
29 March 2010 
 

29 March 2010 
 
                                Orpak Systems Ltd 
                           ("Orpak" or "the Company") 
 
          Proposed cancellation of admission of Ordinary Shares to AIM 
 
The Board of Orpak announces its intention to apply for the cancellation of 
admission to trading on AIM of the Ordinary Shares (of nominal value NIS 0.02 
each) in the share capital of the Company, subject to shareholder approval at a 
Special Meeting. It is anticipated that the effective date of the cancellation 
will be 30 April 2010 following the Special Meeting to be held on 22 April 2010. 
 
Rationale for the Cancellation 
 
In arriving at this decision, the Board has considered (1) the significant 
ongoing costs associated with maintaining a listing on AIM, (2) the relative 
inactivity, in Ordinary Share trading volume terms, of the AIM market, and (3) 
the lighter regulatory burden which would be faced by the Company following the 
cancellation. 
 
The cancellation should, therefore, result in the Company reducing its 
administrative cost burden. Accordingly, the Board unanimously believes that it 
is in the best interests of the shareholders to seek cancellation at the 
earliest opportunity. 
 
The Board has received undertakings to vote in favour of the resolution to be 
proposed at the Special Meeting to effect the cancellation from shareholders 
holding shares representing, in aggregate, 86 per cent. of the issued share 
capital of the Company. 
 
Effect of Cancellation 
 
Following cancellation, the Ordinary Shares will not be listed on any publicly 
quoted market in the UK or elsewhere. Should the cancellation be approved, the 
Company intends to act in an appropriate manner befitting a company that no 
longer trades through a public market. 
 
The principal effects of cancellation will be: 
 
·    there will no longer be a formal market mechanism enabling the shareholders 
to trade their shares through the AIM Market. The Company's Depositary Interest 
and CREST facility will be cancelled and the volume of trading in the Ordinary 
Shares is likely to be severely reduced 
·    the Company will not be bound to announce material events, nor announce 
interim or final results (although annual accounts will still be sent to 
shareholders prior to an AGM being held, in accordance with the Company's 
articles of association) 
·    the Company will no longer be required to comply with any of the corporate 
governance requirements for companies trading on AIM 
 
A circular providing further details on the proposed cancellation and Special 
Meeting is being posted to shareholders today. The circular is also available on 
the Company's website: www.orpak.com. 
 
 
Enquiries 
 
Orpak Systems Ltd 
Hayim Kohen, CEO                                                 [phone] 
Hemi Shtral, CFO 
 
 
Libertas Capital 
Sandy Jamieson                                                        +44 20 
7569 9650 
 
 
Corfin Communications 
Harry Chathli, Claire Norbury                                   [phone] 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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