I spotted this horror story in the letters column of this weeks shares mag. Is there anybody else caught in this trap - set me wondering also if this is a risk to look out for with all dual quoted stocks?

Transware: aim for a poor valuation?

Last week Transware issued a statement saying it has applied to cancel its AIM listing in a bid to win funding in the US. Apparently, poor trading has left the company needing funds, but potential US investors regard the companys quotation on AIM as a liability rather than an asset.

The statement adds that cancellation would draw a line under past trading and the currently low valuation attributed to the company, which the directors do not consider to accurately reflect its worth.

Where does this leave existing investors? On the day the statement was issued, the share prices dropped 56.5%, thereby making sure that the currently low valuation attributed to the company reached absolute rock-bottom. If the directors were looking to take the company private at a knockdown price, then they look likely to achieve their objective.

This seems to be yet another case of existing private investors being marginalised. Why should the management and some unknown US investors be allowed to buy the company on the cheap? Is there anything that can be done to stop this sharp practice? Should the Stock Exchange be launching an investigation? What can we do?

I have not read the RNS, but cancelling a listing does not mean that the company is to be bought. It merely means that the shares will no longer be traded on the AIM exchange. You would still be a shareholder but would be unable to sell your holding except by finding a purchaser yourself. This is a situation most people want to avoid which is why the share price has collapsed, presumably under a flood of selling.

Can anyone remember what the Transware price was when they split with Gladstone please?

I need It for CG reference.