Global Market Group Ltd Cancellation of Admission to Trading on AIM (0232A)
September 23 2015 - 12:34PM
UK Regulatory
TIDMGMC
RNS Number : 0232A
Global Market Group Ltd
23 September 2015
Global Market Group Limited
("Global Market" or the "Company")
Cancellation of Admission to Trading on AIM
Global Market regrets to advise that, pursuant to AIM Rule 1,
the Company's shares will be cancelled from trading on AIM
("Cancellation") at 7:00 a.m. on 24 September 2015 as the Company
was unsuccessful in its efforts to appoint a replacement nominated
adviser ("NOMAD").
Following the resignation of the previous NOMAD, the Company
acted immediately to identify a replacement NOMAD. However, there
proved insufficient time for the new NOMAD to complete the required
due diligence within the one month time frame permitted under AIM
Rule 1 to avoid Cancellation.
The Directors of the Company greatly regret both the initial
suspension during August 2015 and the delisting that has now
occurred as a direct result of that event.
The Directors wish to stress that the initial suspension
occurred as a result of inter-related events stemming from the
announcement on 10 August 2015 concerning a very positive property
deal ("the Transaction") that involves the possible triggering of
Reverse Takeover provisions under AIM rules. The Company further
announced details of the Transaction on 21 August 2015. This
included details of the auction timeline for the Transaction set by
the Guangzhou Provincial Government, as a result of which the
Company was unable fully to comply in time with the information
requests of the former NOMAD, which then felt obliged to resign.
The Directors had conducted full due diligence on the property
deal, which will enable the Company to acquire an ownership
interest in a high-profile corporate headquarters building in
Guangzhou Province's new Pazhou e-commerce centre, and believe it
is in the best interests of the Company. The property deal
comprises complex third-party arrangements that avoid any financial
liability for the Company's shareholders, and needed to meet the
tight completion timetable in order to lock in the benefit of
highly favourable land-pricing terms offered by the Guangzhou
Provincial Government. The Directors of the Company are fully
committed to compliance requirements, and are devoting extensive
internal resources towards working with the AIM team with the
objective of achieving an early relisting of the Company's
shares.
The Transaction is classified as a Reverse Takeover (RTO) under
the AIM Rules. For any RTO, cancellation and re-admission of a
company's shares is a necessary part of the process, and Directors
are confident that upon completion of the RTO process, shareholder
value will be enhanced.
The Directors of the Company are fully committed to maintaining
the high compliance standards required of public companies and will
be devoting extensive internal resources to achieve an early
relisting of the Company's shares.
The Company announced on 15 September 2015 the results of a
successful RMB53.5 million fundraising for its main B2B operating
subsidiary Global Market Group (Guangzhou) Limited ("GMGZ"), in
which it indirectly owns 99.98% of the equity. The fundraising
implied a valuation of approximately GBP183 million for GMGZ.
Finally, the Company reports that in the H1 2015 the Company
returned to profitability, albeit on lowered sales, following an
extensive strategic repositioning exercise started during 2013.
Against a backdrop of challenging global economic conditions, the
Directors are confident the Company is now positioned for future
growth in the rapidly developing cross-border and domestic
e-commerce markets.
Shareholders are advised that, during the period following
Cancellation until the listing is restored, the Company intends to
provide updates via its website at www.globalmarket.com, and via
RNS Reach.
For further information, please visit www.globalmarket.com or
contact:
David Ling/ Cheandy Hu/ Mophy Fan
Global Market Group Limited: +86 (20) 8600 2299
This information is provided by RNS
The company news service from the London Stock Exchange
END
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