Global Petroleum has formally applied to ASX requesting the removal of the Company from the official list of ASX pursuant to ASX Listing Rule 17.11 and ASX has accepted its application and resolved to remove the Company from the Official List subject to the satisfaction of certain conditions.
Global's securities are currently listed/quoted on two securities exchanges - the Official List and AIM.
Following due consideration/and in order to streamline the Company's listing and compliance costs, the Directors of Global resolved that the continued listing of the Company's securities on the Official List was no longer in the best interests of the Company and its shareholders. Factors the Board considered include the following:
(a) Predominance of AIM listing : the Company's ordinary shares were admitted to trading on AIM on 7 March 2005. Over the last five years there have been approx. 4,830 trades on ASX and approx. 19,000 trades on AIM. The total number of shares that are represented by depository interests for trading on AIM is approx. 75% of the Company's issued shares.
(b) Limited operations in Australia : the Company's current exploration assets are oil and gas permits offshore in Namibia and the Company also has permit applications offshore Italy. It is the Company's current intention to continue to explore these opportunities. Save for maintaining a registered office in Australia, the Company does not have any direct Australian interests and four of its six Board members are now based in the UK.
(c) Lack of Australian investor interest : Australian institutional and retail investor interest in the Company is low and has remained so despite continued efforts by the Company to attract and retain investors based in Australia.
(d) Costs : maintaining two listings adds additional costs to the Company's business. Additionally, there are indirect costs associated with the need to devote management's time to attending to matters relating to the ASX listing which could be better directed elsewhere. Accordingly, the Board believes that the sizeable costs associated with retaining a listing on the Official List outweigh the benefits of maintaining such a listing particularly in light of the Company's inability to raise capital from Australian based investors in recent years.
Accordingly, Global has obtained in-principle advice from ASX in relation to ASX's position regarding a request from the Company to be removed from the Official List. ASX has advised Global that it would be likely to grant such a request and remove the Company from the Official List on a date to be decided by ASX.
Source: Global Petroleum