Starvest PLC (AIM:SVE) stock surged 60% today after the company said it would distribute its interests in Greatland Gold PLC (AIM:GGP, OTC:GRLGF) and Ariana Resources PLC (AIM:AAU) to shareholders.
"The directors have unanimously decided to recommend that the company distribute its Greatland and Ariana Resources interests to the company's shareholders, by way of a capital distribution, so that they may potentially realise greater value from direct ownership of these underlying investments than is reflected in the company's current share price,” it said in a statement on Friday.
The company’s ordinary shares trade at a substantial discount to the underlying value of its investments, including the investment in Greatland Gold, which represents a majority of its assets.
Starvest said that on 21 November it will hold a meeting with shareholders to decide whether to cancel the admission of ordinary shares from trading on AIM and consider a voluntary liquidation.
Its share price rose to more than 8p this morning, after trading at 5.90p yesterday.