Imagesound has decided to cancel its Aim quotation.
The management of the in-store music supplier says that it has been impossible to use the quotation to make additional acquisitions because of the low share price. Instead they have been funded by borrowings. They don’t believe that the share price reflects the progress that the company has made since Imagesound joined Aim in August 2004.
Imagesound says that the quotation isn’t worth the cost or the regulatory headaches. It says that it will save more than £150,000 a year in quotation costs if it leaves Aim. It will also free up the time of the management.
Imagesound will offer its shareholders the chance to deal through a matched bargain facility. Imagesound has discussed the move with its major shareholders so it must have a good idea of their views.
An EGM will be held on the 14 May to vote on the proposed cancellation. Imagesound needs 75% of the shares voted to be in favour of the resolution.
The shares fell 1.25p to 5.75p on the news of the proposed cancellation of the quote. That values the company at £3.64m. That values the company at little more than three times forecast earnings for this financial year.
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