Turbotec Products PLC Proposed delisting and notice of General Meeting (6079A)

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RNS Number : 6079A

Turbotec Products PLC

22 March 2013

 
 Press Release   22 March 2013 
 

Turbotec Products Plc

("Turbotec" or "the Company")

Proposed delisting and notice of General Meeting

Turbotec Products PLC ("Company" or "Turbotec") announces that it is to seek shareholder approval for the cancellation of its ordinary shares to trading on the AIM market of London Stock Exchange plc ("AIM") (the "Cancellation").

The Company's directors have recently undertaken a review of the benefit of the Company's shares continuing to be traded on AIM. Having completed this review, which included consultation with major shareholders, the directors have agreed that it is most likely to promote the success of the Company for the benefit of its shareholders as a whole if the admission of the Shares to trading on AIM is cancelled.

The current economic situation has led to significant falls in the values of the global stock markets, which have been exaggerated in small cap, low liquidity stocks. Whilst there are several factors affecting any Company's share price, a key point for the Company is the lack of demand for its shares and, in practical terms, a small free float, which further reduces demand. Given the lack of liquidity in the shares, in practice, minority shareholders have not been able easily to trade their shares.

It is the opinion of the directors that, in the current market, the Company's market capitalisation has become disassociated with its inherent value. The directors also believe that a stagnant or falling share price has had a de-motivating effect on the business and its employees and also a potentially adverse impact on customer and supplier perception.

Under the AIM Rules, it is a requirement that any cancellation of admission to trading on AIM must be approved by not less than 75 per cent. of votes cast by shareholders voting in a general meeting. Accordingly, the Company will today send to shareholders a circular and notice of general meeting (the "General Meeting") convening the General Meeting at which a special resolution (the "Resolution") will be proposed to approve the Cancellation (the "Circular").

The General Meeting will be held at the offices of Gowlings (UK) LLP, 125 Old Broad Street, London EC2N 1AR at 09.30 a.m. on 23 April 2013. Should the Cancellation be approved at the General Meeting, it is expected that it will take effect at 07.00 a.m. on 1 May 2013.

Expected timetable of events

 
Announcement of proposed Cancellation               22 March 2013 
------------------------------------------  --------------------- 
Posting of Circular and Form of Proxy to            22 March 2013 
 Shareholders 
------------------------------------------  --------------------- 
Latest time and date for receipt of Forms   9.30 a.m. on 19 April 
 of Proxy                                                    2013 
------------------------------------------  --------------------- 
General Meeting                             9.30 a.m. on 23 April 
                                                             2013 
------------------------------------------  --------------------- 
Expected cancellation of trading of Shares     7.00 a.m. on 1 May 
 on AIM                                                     2013* 
------------------------------------------  --------------------- 
 

* Assuming that the General Meeting is not adjourned and that the Resolution approving the Cancellation is duly passed

Recommendation to shareholders

The board of directors of the Company (the "Board") consider the Resolution to be in the best interests of the Company and will promote the success of the Company for the benefit of its members as a whole. The Board therefore unanimously recommend shareholders to vote in favour of the Resolution at the General Meeting as they intend to do in respect of their own holdings of, in aggregate, 2,605,500 ordinary shares representing approximately 20.34 per cent. of the issued share capital of the Company at the date of this announcement.

- Ends -

For further information please contact:

 
 Turbotec Products Plc 
 Robert Lowe, Non Executive Chairman         [phone] 
  [e-mail] 
 
  Sunil Raina, Managing Director           Tel: [phone] 
  [e-mail]                      www.turbotecproducts.com 
 
  Robert Lieberman, Finance Director       Tel: [phone] 
  [e-mail]                  www.turbotecproducts.com 
 
   Seymour Pierce 
 Catherine Leftley, Corporate Finance        Tel: [phone] 
  Paul Jewell, Corporate Broking                             8000 
 

Media enquiries:

 
 Abchurch Communications 
 Henry Harrison Topham / Simone Elviss       Tel: [phone] 
                                                            7728 
                                          www.abchurch-group.com 
 

Electronic copies of this announcement can be obtained from the Company's website www.turbotecproducts.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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