- ADVANZ PHARMA (TSX:ADVZ) has applied to voluntarily delist from the Toronto Stock Exchange (TSX)
- The company’s board of directors authorised the decision in light of ongoing listing expenses
- ADVANZ PHARMA hopes that the delisting will increase operational efficiency and reduce costs
- An overwhelming majority of company shareholders consented to the delisting
- ADVANZ PHARMA’s share price is down 19.32 per cent, and is currently trading at $4.51 per share
ADVANZ PHARMA (TSX:ADVZ) has applied to voluntarily delist its limited voting shares from the Toronto Stock Exchange (TSX).
After concluding that a continued listing had more disadvantages than benefits, the company board of directors authorised the application.
ADVANZ PHARMA cited various factors for the decision, including the ongoing costs and expenses of maintaining a listing. The time spent ensuring compliance with TSX regulatory requirements was also an issue.
Furthermore, the company felt that the limited voting shares’ volatile trading price does not reflect the company shares’ true value.
ADVANZ PHARMA hopes that delisting will result in greater operational efficiency and reduced costs.
Typically, a company would call a shareholders meeting to gain approval for delisting. Instead, the company was permitted to provide written evidence of shareholder approval. The evidence demonstrated that over 50 per cent understood the reasons for delisting, knew the consequences, and supported the decision.
Per its investor rights agreement, the company obtained written consent from at least 60 per cent of limited voting shareholders. Approximately 80.5 per cent of those who hold limited voting shares gave their approval for the voluntary delisting.
The Majority Shareholders, who hold approximately 72.4 per cent of the limited voting shares, also consented to the delisting.
The company expects that its limited voting shares will delist from the TSX on or around March 27, 2020.
Company shares have dropped significantly today, although it is unclear which factor(s) caused this. The drop may have been caused by the delisting news, the ongoing impact of COVID-19, or a combination of both.
ADVANZ PHARMA’s share price is down 19.32 per cent, and is trading at $4.51 per share, as of 11:03am EST.