Why is Origo Partners (LON: OPP) delisting from AIM?

Highlights

• Shares in Origo partners are set to be suspended from trading on the AIM from 28 April, while the cancellation of shares will take place on 30 May.
• Origo has decided not to appoint a new nominated advisor considering its financial positions and set objectives.
• The company will payout 80% of the distributable cash to its redeemable preference shares and the rest 20% to the ordinary shares before 30 May 2022.

Isle of Man-based investment firm Origo Partners plc (LON: OPP), is all set to exit the Alternative Investment Market (AIM) of the London Stock Exchange (LSE).  After the delisting announcement, Origo’s shares dropped by 33% yesterday (26 April 2022) to GBX 0.07.

Origo Partners’ delisting plans

On 26 April 2022, Origo Partners declared that it is going to cancel its AIM listing. The nominated adviser of Origo Partners, Arden Partners Plc., recently became illegible to act in that capacity to AIM companies due to being taken over by a third party, Ince Group plc. The Board of Origo, based on the company’s financial position, decided that choosing another nominated advisor won’t be suitable for the company at present.

As there won’t be an appointment of another nominated advisor, the ordinary and redeemable preference shares of Origo Partners would be suspended from trading on the AIM from 7.30 AM (GMT+1) on 28 April 2022. Later, on 30 May 2022, the admission of the shares of Origo Partners to the AIM would stand cancelled.

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Origo had earlier announced that it would monetize all its marketable legacy investments and give back the proceeds to the company’s shareholders. Taking the realization of these objectives into account, Origo Partners decided not to appoint a new nominated advisor. In line with these objectives, the company will pay out 80% of the distributable cash to its redeemable preference shares and the rest 20% to the ordinary shares before 30 May 2022.

After the suspension and cancellation of Origo’s shares, the company will still be able to provide all the necessary information to its shareholders through its website as well as the RNS service. Even though the shares wouldn’t be traded under any kind of formal mechanism post suspension, the free transfer of shares would take place. However, the value of the shares may be negatively impacted due to their reduced liquidity.

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Origo Partners’ share price performance

The shares of Origo Partners plunged by 33% on 26 April 2022 after the delisting announcement. However, Origo shares were up by 7.14% at around 11:30 AM (GMT+1) on 27 April 2022, at GBX 0.08. The current market cap of the company stands at £0.25 million.