Crowd for Angels (UK) Limited (CFA or the Company) notes the statement from Eight Peaks Group on 30th April 2019 and the Circular to shareholders regarding the proposed cancellation of admission to trading on AIM. CFA currently holds 546,840 shares in Eight Peaks Group, giving the Company a stake of just over 3%.
Having taken into account the contents of the Circular, Crowd for Angels confirms that it will be voting AGAINST all resolutions proposed at the General Meeting to be held on 16th May 2019.
Particularly, the Company has great concerns over Resolution 1 (the Cancellation Resolution). In Eight Peaks Group own words, if passed, will result in there being no formal market mechanism enabling Shareholders to trade Eight Peaks Group Ordinary Shares. Given the limited and vague information provided in the Circular, the Company has no confidence that the Directors of Eight Peaks Group have any desire to put in place an alternative trading facility if the cancellation resolution is passed.
The Company recognises that AIM has its liquidity drawbacks. But regardless, we believe that the cancellation of the listing will result in either no and/or little trading facility being available to Shareholders, in the end. On the alternate, highly illiquid “matched bargain” facility being offered. And this will significantly reduce and even eliminate the liquidity currently offered on AIM. Only moderate cost savings are expected from the offered cancellations. The Company believes that the Cancellation Resolution is not in the best interests of Eight Peaks Group shareholders.
Vote Against Resolutions
To conclude, Crowd for Angels, therefore, encourages fellow shareholders to vote against the proposed resolutions. Private shareholders with shares held in agent accounts are encouraged to contact their stockbrokers to instruct and advise them to vote against the resolutions. For further information about the proposed resolutions or to contact Crowd for Angels, email us at [email protected]