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Firestone to Drop its Botswana Stock Listing
Feb 19, 2014 5:12 AM
By Deena Taylor
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RAPAPORT... Firestone Diamonds will cease trading on the Botswana Stock Exchange on February 28, 2014, a move that was cited to be in line with the company's strategy to focus on developing its Liqhobong diamond mine in Lesotho. Firestone's shares trade on the London Stock Exchange's Alternative Investment Market (AIM).
Firestone owns the BK11 mine in Botswana. The mine ceased production one year ago and was placed on care and maintenance so that the company could focus on its Lesotho asset. The board is considering various strategic alternatives for its Botswana operation, including disposal or a joint venture, but it recognizes that extracting fair value from the asset in the current investor climate could be challenging.
The company proposed a resolution to voluntarily delist from the Botswana Stock Exchange at its annual general meeting on November 29, 2013 and explained to shareholders it could not justify the administrative costs of maintaining its listing in Botswana.
Firestone initially listed in Botswana in June 2011. Since then, less than 0.02 percent of the company's ordinary shares moved onto the exchange with only 92,828 shares traded on nine days in 35 separate trades. The company noted that six months prior to its annual general meeting, only 1,107 shares traded at a weighted average value of BWP 0.06 per share.
Following delisting in Botswana, shareholders on the company's Botswana share register will have the option to sell their shares through a share sale facility or retain their shares, which will be transferred to the company's AIM share register.
Firestone trades on AIM under the ticker FDI.
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Tags:
BK11, Botswana Stock Exchange, Deena Taylor, diamonds, Firestone Diamonds, Liqhobong
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