Falcon Gold Zimbabwe Limited (Falgold) is reportedly going to seek approval from the shareholders to delist the counter from the Zimbabwe Stock Exchange (ZSE), Business Times reports.
Falgold is reportedly planning to delist as it is claiming the ZSE has not been beneficial but has infact become detrimental to the gold producer given legal, compliance, audit costs. The company’s inability to raise capital through the sale of shares is also another reason why the company is seeking to delist from the bourse.
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Falgold will reportedly hold an extraordinary annual general meeting in Bulawayo on 29 October and they are planning to ask the shareholders permission to delist from ZSE according to the gold producer which reportedly said:
In the face of ongoing viability problems the additional costs of being listed, with no compensating benefits, can no longer be borne by the company. Accordingly, Falcon Gold has decided to propose to shareholders its delisting from the ZSE.
Falgold which is a subsidiary of New Dawn Mining Group has appointed Imara Corporate Finance Zimbabwe their financial advisors, a cash offer has been extended to minority shareholders by a company called Boundary Investments (Pvt) Limited,
Earlier this year, the gold producer delayed producing some of their financial results and voluntarily delisted from the ZSE
More: Business Times