XTL Biopharmaceuticals Ltd. (Nasdaq:XTLB); LSE: XTL; TASE:XTL) will delist its shares from trading on the London Stock Exchange (LSE) on October 31. The shares will continue to be listed on Nasdaq and the Tel Aviv Stock Exchange (TASE).
XTL is listed on the LSE for historic reasons: it held its IPO there. However, the company saw no justification for trading on three stock exchanges, especially when it is trying to cut costs.
A few months ago, XTL CEO Ron Bentsur told “Globes”, said, “Trading in London involves heavy costs and considerable administrative attention. If we want to raise money, we’ll have to write a second special prospectus, which is redundant for us. It’s unusual for a company to be traded on three exchanges, and arbitrage speculators are the only ones who have benefited.”
Since then, Nasdaq sent XTL a Staff Deficiency Letter stating that the company’s financial statements for the first half of 2007 indicate that it no longer complied with the minimum $10 million shareholders' equity requirement for continued listing on the Nasdaq Global Market. XTL intends to respond to Nasdaq with information that may enable it to maintain its listing on the Nasdaq Global Market. The company may be planning a new stock offering to raise the necessary capital.
Published by Globes [online], Israel business news - www.globes.co.il - on October 7, 2007
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