Jadestone Energy Inc., an independent oil and gas production company focused on the Asia Pacific region, provides an update on its planned voluntary de-listing of its common shares from trading on the TSX Venture Exchange.
Since the admission of Jadestone’s shares to trading on AIM, a market of the London Stock Exchange, in August 2018, the Company has experienced a significant shift away from Canada in both the composition of its share register and in the trading volume of its shares. Approximately 97% of its shares are held by non-Canadian residents at this time, while more than 98% of all Jadestone shares that traded in 2019, were traded on AIM.
The directors of the Company believe that the minimal trading activity of the Company’s shares on the TSXV no longer justifies the expense and administrative requirements associated with maintaining the dual listing. The Company estimates it will achieve annual savings of approximately US$60,000.
On February 25, 2020, the Company announced its plan to de-list from the TSXV, and an application to the TSXV is being made by the Company today. It is expected that the final day of trading for Jadestone’s common shares on the TSXV will be March 24, 2020. The Company’s shares will continue to trade on AIM.
Following the de-listing, Jadestone intends to seek Canadian designated foreign issuer status under National Instrument 71-102 Continuous Disclosure and Other Exemptions Relating to Foreign Issuers which, if successful, would relieve the Company from certain Canadian reporting requirements, and enable the Company to migrate further toward the usual practices and norms of a UK listed company.
Collectively, these two steps will realise around US$120,000 of annual savings.
Paul Blakeley, President and CEO commented:
“I am grateful to our Canadian shareholders, whose investment provided critical seed financing for Jadestone’s early days, and to the TSXV who offer a world class trading platform for our shares. As the nature of our shareholder register has evolved, particularly in response to our August 2018 equity raise and listing on AIM, we need to acknowledge that the overwhelming majority of trading volume has migrated to the UK.
“We are ever-mindful of opportunities to drive efficiency into our business, and see de-listing from the TSXV as a way to remove one management distraction and realise cost savings, while having an immaterial effect on trading liquidity and access to capital.”
Following the de-listing from the TSXV on March 24, 2020, the Company’s Canadian share register will continue to be maintained, however shareholders will no longer be able to trade on the TSXV. In order to continue to be able to trade Jadestone’s common shares on a liquid market, namely on AIM, shareholders can elect to transfer their shares to be held as depositary interests on the UK’s settlement system, CREST.
The majority of the shareholders on the Company’s Canadian share register are participants in the Canadian Depository for Securities (“CDS”), either as CDS participants on their own behalf or as beneficial shareholders, with their interests held via a broker in CDS. The balance are shareholders with Canadian share certificates, and appear in their own name on the Canadian share register, so-called registered shareholders.
The following description provides further information, for each of the CDS participants and registered shareholders, wishing to transfer their shares from the Company’s Canadian share register into depositary interests on CREST. Note that all such shareholders will need to open an account with a CREST broker/nominee, if they do not already have a broker account capable of holding CREST depositary interests.
CDS participants should complete and submit a “CDS Withdrawals to U.K. Depositary Interests” form to Computershare Investor Services Inc., for the issue to their broker/nominee of depositary interests held in CREST. Alternatively, beneficial shareholders (those who hold their shares in CDS via a broker) can request their broker to initiate an electronic transfer by way of the web-based Computershare XSettle Electronic Instruction system.