Kimberley Diamonds also said the reasons for its application for delisting include a lack of interest in its shares in the Australian market, low liquidity in its shares and because further fundraising, including any required restructuring of existing loans, is more likely to be successful if the company is delisted.
According to Kimberley Diamonds, the delisting will result in significant cost savings for the company. However, it warned that the Australian Stock Exchange is not required to act on the company’s request and may require that Kimberley Diamonds satisfies certain conditions before giving its approval.
The company will keep the market updated in this regard.
The directors of the diamond producer will seek shareholder approval for the proposed delisting. Shareholders have the opportunity to sell their securities while the ASX considers the delisting and following the planned delisting, shareholders will need to contact the company to establish if there are any known buyers.