STTM Strontium

 
TIDMSTTM 
 
STRONTIUM PLC 
 
                        ("Strontium" or the "Company") 
 
                          Proposed Delisting from AIM 
 
 
The Board of Strontium announces that it has made application to the London 
Stock Exchange to cancel trading in the Company's shares from AIM with effect 
from 28 April 2011 (the "Delisting").  This announcement sets out the reasons 
for the proposal. 
 
The principal reasons for the admission of the ordinary shares to trading on 
AIM have been (amongst other things) to provide the Company with the ability to 
access capital in order to fund its strategy and to use its ordinary shares for 
acquisitions. Having recently undertaken a review of both the advantages and 
disadvantages of maintaining admission of the ordinary shares to trading on 
AIM, the Directors have concluded that the admission should be cancelled. In 
reaching this conclusion, the Directors have taken the following factors into 
account: 
 
  * given the overall market conditions for small listed companies, the 
    Directors are of the opinion that it is (and will continue to be) difficult 
    for the Company to attract meaningful equity investment through its listing 
    on AIM; 
 
  * the AIM listing of the ordinary shares does not, in itself, offer investors 
    increased liquidity or marketability of the Company's shares and there is 
    no opportunity to trade in meaningful volumes or with frequency. With 
    little trading volume, the Company's share price can move up or down 
    significantly following trades of small numbers of shares; and 
 
  * the Directors estimate that annual direct and indirect costs of the 
    ordinary shares' AIM listing are at least GBP50,000. This estimate includes 
    listing expenses and advisory, legal and audit fees but excludes any costs 
    associated with the considerable amount of senior executive time which is 
    also spent dealing with the issues related to the AIM listing. 
 
Pursuant to AIM Rule 41, cancellation of the admission of the ordinary shares 
to trading on AIM requires the consent of not less than 75 per cent. of votes 
cast by Shareholders (in person or by proxy) given in a general meeting and the 
expiration of a period of twenty business days from the date on which notice of 
the Delisting is given. In addition, a period of at least five business days 
following the shareholder approval of the Delisting is required before the 
Delisting may be put into effect. 
 
The Company has notified the London Stock Exchange of the proposed Delisting. 
In the event that Shareholders approve the Delisting, it is anticipated that 
the last day of dealings in the ordinary shares on AIM will be 27 April 2011. 
 
 
Effect of Delisting 
 
The principal effect of the Delisting is that cancellation in the trading of 
the Company's ordinary shares on AIM may reduce the liquidity and marketability 
of the Company's shares, which are intended to be traded on JP Jenkins Share 
Matching Facility. 
 
JP Jenkins provides companies which are unlisted and unquoted with a facility 
enabling existing and prospective shareholders to deal in their shares. 
 
It is intended that Strontium shareholders will be able to trade their shares 
via the JP Jenkins share matching facility for companies. This provides a cost 
effective mechanism to buy or sell shares. Shareholders can use their existing 
stockbroker should they have one. Shareholders will need to instruct their 
existing stockbroker with a limit order who in turn will contact JP Jenkins to 
place the limit order on their behalf. Once the limit order has been executed, 
the shareholder will receive a contract note from their stockbroker. 
 
Should a shareholder not have a stockbroker they can use the services of JP 
Jenkins once the required paperwork has been completed. 
 
 
Timeline 
 
The Board has accordingly concluded that it is in the best interests of 
shareholders as a whole that the Delisting be approved. 
 
In conformity with the timings outlined above, the Company will send a circular 
to shareholders shortly convening a general meeting that is scheduled to take 
place on 19 April 2011. The Company's proposed cancellation of trading of its 
shares on AIM is scheduled for 28 April 2011. 
 
 
Enquiries 
 
Strontium Plc                                   +44 (0) 20 7937 9010 
Michael Metcalfe, Chairman 
 
Cairn Financial Advisers LLP                    +44 (0) 20 7148 7900 
Nominated Adviser 
Liam Murray / Avi Robinson 
 
 
 
END 
 

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