admin42-year presence on the Zimbabwe Stock Exchange next week.
Investors watched their investments being wiped out as the company failed to secure funding to recapitalise and retire its debt.
CAPS opened the year trading at about US1c with a total market capitalisation of US$4,5 million and has shed 80 percent to just US0,2c in current trades.
The group said the decision to delist would give directors flexibility to speed up decision-making.
The company is also expected to relist the restructured entity in the future.
But it had had indicated that the other reason for delisting was that the Zimbabwe Stock Exchange was trading on the negative due to the worldwide financial meltdown and the economic climate in the country.
The firm has been under-performing owing to operational challenges. Delisting is part of a campaign to lure investors and the company’s proposed new status would allow for faster decision-making and greater flexibility.
Very few companies quoted on the stock exchange have managed to recapitalise.
For most of those that managed to come on to the market, shareholders failed to follow up their rights.
Due to lack of funding CAPS continued to trade at a discount, compared with the its net asset value.
When a company is delisted, it means shareholders can no longer trade their shares on the stock exchange since it would be a private company instead of a public-listed company.
CAPS said shareholders willing to shed off their stake before the delisting should do so.
Those wishing to dispose of their shares after the delisting will be allowed to do so, but the price per share would be determined by private valuation.
Agreement between the individual buyer and seller, and the means of sale would be restricted to private deals.
After delisting, CAPS will immediately call on the shareholders to raise about US$15 million for capitalisation and to retire debt.
The pharmaceutical firm said delisting was part of the group’s restructuring to bring in potential investors to inject fresh capital into the underperforming company.
Proceeds from the fund-raising would also be used to tool the factory, refurbish hospital theatres and provide working capital.
The existing group structure would also be unbundled into three separate entities, CAPS Pharmaceutical Manufacturing, Distribution and Health Care.
Online Reporter