AIM, the London Stock Exchange’s market for small and medium growth companies, today issued a notice cancelling trading of United Kingdom-based transformer oil rerefiner Hydrodec’s shares because of its failure to meet a deadline for concluding a company audit. Trading of Hydrodec’s stock had been suspended since Oct. 1.
Although Hydrodec confirmed in a March 31 press release it had reached agreement on a $6.8 million refinancing package for its Canton, Ohio transformer oil rerefinery and assets, Hydrodec said it remained unable to conclude its audit for the 18-month period since June 2020. Factors cited including the ongoing impact of the pandemic and the company’s financial constraints.
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Headquartered in London, the company had said in February that its shares remain suspended from trading on AIM, pending the publication of the financial statements and resolution of the company’s financial difficulties. If the March 31 deadline for concluding the audit wasn’t met, then under the AIM rules the company’s shares were to be canceled from trading on AIM.
“The board remains committed to publishing its outstanding audited accounts at the earliest opportunity and will communicate further with registered shareholders at that time,” the company added.
The board said in a March 31 news release that in the recent past, Hydrodec’s market capitalization and lack of liquidity in its shares impacted some of the potential advantages to having the shares admitted to trading on AIM.
“The regulatory and financial reporting regime applicable to companies whose shares are admitted to trading on AIM will no longer apply to Hydrodec,” the company stated. “However, the company will remain subject to relevant UK company law and will continue to communicate about the company (including annual accounts) to its shareholders.
“The company will continue to maintain a website and post updates on material developments, although shareholders should be aware that there will be no obligation for the company to include all of the information required by the AIM rules.”