14th Feb 2020 08:42
(Alliance News) - Gemfields Group Ltd began trading on AIM for the first time since July 2017 on Friday in an "important milestone" for the gemstone miner.
Fieldfisher, a law firm which advised the company's nomad finnCap, said Gemfields is the first mining admission to London's junior market in 12 months.
Gemfields Chief Executive Sean Gilbertson said: "Today's admission to the London market is an important milestone for Gemfields after a decade of growth in the demand and prices for precious coloured gemstones. The AIM listing seeks to provide UK, European and international investors with more expedient entry into the precious coloured gemstone market, to improve share trading liquidity and to widen Gemfields' current investor base."
The company has "not raised any capital" in conjunction with the AIM listing, Fieldfisher added.
Gemfields has a primary admission in Johannesburg, and is also listed in on the Bermuda Stock Exchange.
Gemfields left AIM in July 2017 after a takeover by Pallinghurst Resources Ltd. However, in March 2019, the company decided to return to AIM amid a "lack of broker research and share trading liquidity, as well as feedback from shareholders".
In November, Gemfields replaced its chair as the process to gain AIM stock market listing highlighted that the father and son relationship between then-chair Brian Gilbertson and CEO Sean Gilbertson would potentially pose an impediment to best corporate governance.
As a result, Brian Gilbertson stepped down as a director of Gemfields after 12 years on the board. He was replaced by Martin Tolcher.
The stock was untraded in early dealings in London on Friday morning. In Johannesburg, shares were 4.0% higher at ZAR2.10, which is about 11.00 pence, each.
By Eric Cunha; [email protected]
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