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Tlou Energy Ltd on Monday revealed it is set to delist from London’s AIM market following its failure to deliver ‘sufficient value’. The Sub-Saharan Africa focused power solutions firm drew attention to the challenging UK market conditions for exploration stocks following an extensive review by its board. It cited UK-based capital raising challenges as one the primary reasons for the delisting, with large discounts required and a ‘lack of long-term support from investors compounding this issue’. The company added that it does not foresee these circumstances remedying themselves in a time-frame which would make staying on AIM worthwhile. Its shares tumbled 40% to 0.74 pence on Monday afternoon in London. Tlou further noted the ‘considerable cost’ associated with maintaining its AIM listing coupled with the significant regulatory burden for management, stating these were disproportionate to the benefits provided by the listing. Tlou will remain on both the Australian Stock Exchange and the Botswana Stock Exchange. Its board unanimously recommended the AIM exit and pending shareholder approval at its annual general meeting on November 26, it will delist from AIM on December 31. ‘The company was admitted to AIM in 2015, at a time when there was good support from the UK market for African based projects and exploration companies such as Tlou. ‘However, in recent years the level of support has dropped significantly especially in relation to exploration and fossil fuels despite the need for more exploration, mining and energy to power worldwide economies,’ the firm said. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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