AIM Delisting

[thaiflyer1]

Hi Guys..........hoping some knowlegeble person can help.............

 

Ive got some shares in an AIM company thats delisting...........they have just issued an RNS saying there will be an extraordinary meeting on 12th March and if the delisting resolution passes then the shares will be delisted on the 19th March

 

The company have set aside 5 million pounds to buy the shares back at 30p..................today the shares have gone from 17p to 25p on the news

 

My problem is this i bought in a while ago at 27p...........i could sell now and take the loss but if i wait until after the 12th march and before the 19th will i simply be able to sell at 30p on the AIM?

 

Hers a link to the RNS...............the company are Haike Chemicals

 

http://otp.investis.com/clients/uk/haike_chemical_group/rns/regulatory-story.aspx?cid=1631&newsid=978630

 

Any advice greatly appreciated

[AlexRich]

I think you will be okay to wait and be paid the 30p, that's assuming that shareholders pass the forthcoming resolution. I don't think you will be selling on AIM at 30p, they will simply send you or your nominee account the value of your shares ... number of shares X 30p.

 

The company is based in China but it's PR communications are handled by a company in Knightsbridge London called the Cardew Group [[email protected]] There is an email [email protected] to contact them. These details can be found on the Haike company website. Ask them how the 30p will be paid, they will be able to give you the correct answer. I'm guessing some shareholders' might sell now at a lower price just in case the resolution does not pass, and they end up owning stock in an unlisted company. You might want to ask Cardew how confident they are that the resolution will pass. 

 

Good luck.

 

[thaiflyer1]

6 hours ago, AlexRich said:

I think you will be okay to wait and be paid the 30p, that's assuming that shareholders pass the forthcoming resolution. I don't think you will be selling on AIM at 30p, they will simply send you or your nominee account the value of your shares ... number of shares X 30p.

 

The company is based in China but it's PR communications are handled by a company in Knightsbridge London called the Cardew Group [[email protected]] There is an email [email protected] to contact them. These details can be found on the Haike company website. Ask them how the 30p will be paid, they will be able to give you the correct answer. I'm guessing some shareholders' might sell now at a lower price just in case the resolution does not pass, and they end up owning stock in an unlisted company. You might want to ask Cardew how confident they are that the resolution will pass. 

 

Good luck.

 

Thanks for the reply...................think in the first instance i/ll contact Cardew as you suggest and see what the procedure is going to be.

 

I think the resolution will pass, think you need 75% of the shares to vote yes and they apparently have 70% on board already.

 

Thanks again

[AlexRich]

Below is an article from the small company UK website called Shareprophets for your information.

 

Note the last sentence ... he's casting some doubt over waiting. There have been many scam companies from China listed on AIM, that's probably why he has said that. He's hinting that perhaps there might be a problem being paid out once the resolution is passed. I don't know how likely that is. If as he has said the company may relist in the future it is less likely they would do that. So read as widely as you can ... your last day to sell on AIM would be 18th March, so you have time. Check with Cardew that trading will be open from 13th to the 18th March. The gap between the payout of 30p and the bid price in the market may narrow after the 12th if the resolution is passed. Bid price closed at 25p today.

 

Author: Nigel Somerville, website Shareprophets.

 

"And so the ShareProphets AIM-China Filthy Forty will be down to just 7 members after Haike Chemical (HAIK) confirmed its previous suggestion that it may delist. The EGM is set for 12 March (in China, even though the parent company is registered in the Cayman Islands and listed on AIM), at which time we can wave bye-bye to another Chinese value destroyer.

The result of the EGM appears to be set in stone already, as there is to be an offer for the outstanding shares at 30p a pop – conditional on the EGM passing the requisite motions. So, as Tom Winnifrith mentioned in today’s bearcast, we have a graceful exit. Of course, if you bought when the shares listed at 79.8p ten years ago, you might not think it is quite so graceful. The full coverage on Haike is to be found HERE but for now I have two questions:

1)      The company tells us today that it will need to redraw its articles of association in the following manner:

Following the proposed Cancellation, the Directors consider that there would be little benefit to maintaining the Company's present Articles in relation to its current admission to AIM. Pursuant to the Re-registration, the Company would also be required to adopt new articles of association by way of special resolution. Subject to the proposed Cancellation being approved, the Board intends to propose for a separate Shareholders meeting be held after the Cancellation to approve the adoption of new Articles.

OK, it won’t be listed but I don’t see the need for new articles. And why, then, are we told that:

The Directors currently believe that once the Company has developed its operation to the point where it is able to trade profitably, it may be that a relisting on a public stock market will again be appropriate

I just ask the question.

2)      It sounds as though there have been a few developments which were not clearly communicated to shareholders in the past, in relation to planned maintenance and plant shutdowns. For example, we are told today that:

Some production facilities and plants were shut down because they could not satisfy the enhanced PRC environmental rules and regulations

I can’t see how those shutdowns can be described as “planned”. I would say they were “forced”. At any rate, any shareholders who have not yet sold can dump today at 25p or wait for 30p after the delisting. Obviously waiting couldn't possibly go wrong….could it?"

[thaiflyer1]

44 minutes ago, AlexRich said:

 

Interesting reading..............ive sent an email to Cardew, see what they reply next week...........ive been in and out of Haike over the last 6 years,currently have 20k shares so not a huge loss if i sell now but if the 30p is on the table i may as well wait...

 

Thanks once again