Shares of Starvest PLC (AIM: SVE) experienced a 60% jump in value today following the firm’s announcement of its intention to distribute its holdings in Greatland Gold PLC (AIM: GGP, OTC: GRLGF) and Ariana Resources PLC (AIM: AAU) directly to its shareholders.
“The board has reached a unanimous decision to propose the distribution of our interests in Greatland and Ariana Resources to our shareholders through a capital distribution. This approach is intended to provide them with the opportunity to potentially achieve greater value from these investments directly, a value which is not currently reflected in our present share price,” the company stated in a Friday release.
At present, the trading price of the company’s ordinary shares is significantly below the inherent value of its investments, particularly its substantial stake in Greatland Gold.
Starvest disclosed plans to convene a meeting with shareholders on November 21st to deliberate on potentially withdrawing the trading of ordinary shares on AIM and to discuss the option of voluntary liquidation.
Publication of Circular
An explanatory circular (“Circular”) containing a Notice of General Meeting for the First General Meeting and associated form of proxy will be sent to shareholders today providing further details of the Cancellation and Liquidation and setting out the reasons for which the Cancellation and the Liquidation are being proposed. The full text of the Chairman’s letter contained in the Circular is given below.
A copy of the Circular will shortly be available on the Company’s website at: https://www.starvest.co.uk/
Recommendation
The Board of Directors consider that the Cancellation Resolution and Liquidation Resolution are in the best interests of Shareholders as a whole. Accordingly, the Board unanimously recommends Shareholders to vote in favour of the Cancellation Resolution at the First General Meeting and the Liquidation Resolutions at the Second General Meeting, as the Directors intend to do so in respect of their own beneficial holdings of Ordinary Shares, representing approximately 16.7% of the Company’s existing issued ordinary share capital.
This morning, the share price of the company escalated to over 8p, a substantial increase from its previous closing price of 5.90p yesterday.
