Webis Holdings plc Plans to Delist from AIM
Webis Holdings plc, a prominent company in the pool wagering industry and operator of WatchandWager Cal Expo, has announced its decision to voluntarily delist its ordinary shares from trading on AIM, pending shareholder approval. This strategic shift comes after a unanimous board decision aimed at reducing operational costs and safeguarding shareholder value as the company aims for growth in North America.
Current Performance and Future Goals
Despite its reputation, the company's recent financial performance has fallen short of expectations. For the financial period concluding in May 2024, projected losses are around $1,063,000, signaling a need for change. In light of this, Webis has pursued avenues for potential buyers or partnerships to improve its standing, but these efforts have not yielded results. Although WatchandWager remains a leading operator in the United States, its losses at the Cal Expo site in California have raised serious concerns about its current operational viability.
Rationale Behind the Delisting Decision
After careful analysis, the board evaluated the various pros and cons of remaining listed on AIM. They concluded that removing the company from AIM would result in significant cost savings and better align the company's asset valuation. The company's free float stands at a mere 36.9%, and low share liquidity has made active trading difficult, further leading to this pivotal decision.
Next Steps for Shareholders
The next hurdle is obtaining shareholder approval to finalize the delisting. A resolution requiring at least 75% of votes must be passed at the upcoming general meeting. This meeting is scheduled for 10:00 a.m. on a specified date at The Claremont Hotel, Isle of Man. If the resolution passes, the last trading day on AIM will be designated, followed by the official cancellation thereafter.
Post-Delisting Plans and Communication
Once the delisting is executed, Webis may introduce a matched bargain facility to assist shareholders with trading their shares, although no formal agreements have been established yet. Following the cancellation, the company will continue to operate according to its Articles of Association and Isle of Man Companies Acts, ensuring ongoing communication and updates to shareholders via its website. Stakeholders are encouraged to seek independent counsel to fully grasp the ramifications of this delisting.
Frequently Asked Questions
What is Webis Holdings planning to do regarding AIM?
Webis Holdings intends to voluntarily delist its ordinary shares from trading on AIM to cut costs and focus on growth opportunities.
Why is Webis Holdings delisting from AIM?
The decision to delist has been made to reduce operational costs and better reflect the company's asset values, amidst challenging financial performance.
What are the expected financial losses for Webis Holdings?
Webis Holdings anticipates losses of approximately $1,063,000 for the financial period ending May 2024.
Will shareholders have a chance to vote on the delisting?
Yes, shareholder approval is required, requiring at least 75% of votes cast at the upcoming general meeting.
How will shares be traded after the delisting?
Webis may implement a matched bargain facility post-delisting to facilitate trading, though formal commitments have yet to be made.
