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.
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.