Circle Property PLC (AIM:CRC) shares halved in value to 4.95p after it confirmed the planned cancellation of its AIM listing and said it expects to return just over 4p per share to investors in September.
Having sold its last property, 300 Pavilion Drive in Northampton, for £2.85mln earlier this month, and following its shareholder meeting in March, the company said its last day of dealings on AIM will be 31 May, with cancellation before trading begins the day after.
In the past two months, Circle has returned £62.23mln and £46.16mln to shareholders and had intended to sell its final remaining asset, 300 Pavilion Drive, prior to cancellation in order to return the proceeds to shareholders while it was still on AIM.
The current cash balance stands at £3.2mln.
Citing the "significant management time, legal and regulatory obligations" and "material financial costs" such as professional fees, London Stock Exchange fees and other costs associated with being an AIM-traded company, which the directors believe are disproportionate to the benefits to the company, the board confirmed it is proceeding with the cancellation now.
A final return of capital, expected to be no more than £1.1mln or 4p per share, will be made to shareholders following cancellation, by way of a B share issue in September, subject to the timing of receipt of an HMRC VAT refund and after accounting for the termination costs including final completion audits, incentive payments of £1.2mln to be paid to executives and additional employee termination costs.