88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has launched a ‘Small Holding Share Sale Facility’ which aims to mop up a long tail of small shareholdings.
It will buy out shareholders with "less than marketable parcels" of shares, without using a broker or paying brokerage fees.
“The company values all of its shareholders; however, it incurs significant administration costs maintaining such a large number of Less than Marketable Parcels,” 88 Energy said.
A "less than marketable parcel" is defined under ASX Listing Rules as a shareholding valued below A$500. And, based on the 13 June closing price of A$0.023, this would be those with 21,739 or fewer shares.
It will apply to around 8,329 shareholders, collectively representing 5.64% of the company’s issued shares.
88 Energy said that shareholders who do not wish to be included in the process must return a Notice of Retention Form by 5.00 pm (AWST) on 30 July.