Magnolia Petroleum to cancel AIM listing

US-based resource specialist Magnolia Petroleum (LON:MAGP) saw its shares collapse by 77.20% to 0.52p after it announced it would be de-listing from AIM. The firm’s management said that it was finding it increasingly difficult to raise money on the market despite the recovery of oil prices.

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The board believe that the company would be best served by disposing of a number of assets to reduce debt, then attempting to fund any future projects primarily through revenue rather than share issues given the company’s current share price. As a result, they believe the costs of maintaining the listing exceed the benefits. It is expected that trading will cease in late July and that the move will save around £100,000 a year in administrative costs.