MCM to delist from ASX
MCM Entertainment have requested, and received, approval to have themselves removed from the Australian Stock Exchange.
The board of MCM have noted four key considerations in the delisting;
- The low volume of MCM shares being traded has had a disproportionate impact on the share price.
- The costs of maintaining the listing are signficant, both financially and in terms of the attention required from the executive team.
- The company has a lack of liquidity with 3 individuals holding 70% of the company's listed capital, and the Top 20 shareholders having 91% of the shares.
- The company has stated that it has no requirements for future capital raising.
MCM's major shareholders are Michael Gudinski (21.24%), ABN Amro (14.73%) and Tony McGinn (14.69%).
In MCM's preliminary FY12 annual report, the company's 3 divisions reported;
- MCM Media achieving NPAT (net profit after tax) of $1.7m.
- Igloo Digital achieving NPAT of $0.22m.
- Movideo delivering NLAT (net loss after tax) of $1.7m.
Subject to certain conditions, the ASX has approved the delisting which will be tabled at the Annual General Meeting in November 2012.
At the time of writing, MCM Entertainment's most recent trades were at 6.5c per share on low volumes of trade.