31st May 2019 09:50
LONDON (Alliance News) - Nautilus Marine Services PLC said Friday it intends to cancel its AIM listing and re-register as a private company, causing shares to plummet.
Shares in Nautilus plunged 60% to 1.88 pence in morning trade.
Nautilus, which invests in offshore service providers and technologies, said it will seek shareholder approval for the cancellation on June 24. The re-registration is conditional upon at least 75% shareholder approval for the cancellation.
At present, irrevocable undertakings from shareholders accounting for 73% of shares has been obtained.
Nautilus blamed conditions in the offshore service industry for its troubles, which have made it harder to "to identify investment opportunities at attractive valuations", as well as limited share liquidity.
Once the cancellation goes ahead, Nautilus will consider its future strategy and may even sell the offshore service vessels it currently owns. Were Nautilus to do this as an AIM company, there would be a number of regulatory hurdles and it could be required to publish a revised admission document, the cost of which the company sees as "overly burdensome".
The cost, time, and regulatory burden of maintaining an AIM listing were also cited as a reason to cancel.
A matched bargain facility has been arranged and will be put in to place on the day of cancellation, provided permission is obtained. It is expected that the last day of share dealings for Nautilus will be July 1, with cancellation effective July 2.