After years of tremendous losses and miniscule revenues, the management of Prometheus has figured out a fantastic way to avoid the high costs associated with being a publicly traded AIM listed company. Their strategy is a simple one. Delist the stock, resign as officers and directors, and liquidate the business. Following the announcement of their clever plan, Shares in Prometheus Energy (PEC.L) sank yesterday by 30% leaving 3.10p.The alternative and renewable energy does believe that AIM is the place where it could raise funds trough trading its stock. Prometheus Energy added that the expenses spent on AIM quotation outweigh the benefits gained from the London market.
The company's board is set to meet on May 2 to review the cancellation. We would love to see a video of this board meeting. So we can understand exactly how they derived that this is the best decision.
"These changes will result in significant and immediate savings to the company, as well as improved operational efficiency," the company said.In addition, chief financial officer Jeff Spencer has resigned, effective Feb 1 to facilitate the restructuring. Thomas Carbone, currently a non-executive director, will assume day-to-day financial management on an interim basis, it said.
The last interim results for the six months ended 30 June 2007 revealed that the company's turnover up over 200% at $304,000 while in 2006 it was only $142,000. However the energy company had operating loss of $8.3 million whereas in 2006 it was $3.6 million.
Kirt Montague, Chief Executive Officer, commented then: "We have achieved a lot in the first half of the year, making important progress in both the demand side and the supply side of our business. A range of projects in California will give us access to gas resources capable of producing around 32,000 gallons of LNG per day."
Reference
www.prometheus-energy.com
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