SDX Energy PLC (AIM:SDX, OTC:SDXEF) shares plunged around 60% in value on Friday as it announced it intends to exit the London Stock Exchange, delisting from AIM to take up private company status.
It is a cost-cutting move for the company which previously sold its primary asset, a gas field in Egypt, to retain gas-producing assets in Morocco, and last month secured a $4.5 million refinancing of a convertible loan.
"The considerable cost and management time and the legal and regulatory burden associated with maintaining the company's admission to trading on AIM are, in the board's opinion, disproportionate to the benefits of the company's continued admission to trading,” SDX said in a statement.
Specifically, the company cited the significant costs and regulatory burdens of maintaining a public listing, limited liquidity in the company’s shares, and better funding opportunities as a private entity.
In London, the share price dropped more than 60% to 0.75p.