Firestone Diamonds’ shareholders have approved its delisting from public trading, as it seeks to reduce costs amid weak market conditions.
The company, which operates the Liqhobong mine in Lesotho, will remain on AIM — the London Stock Exchange’s submarket for smaller companies — until close of business on March 25, and will officially delist the following day, it said last week. Its stock fell 43% on Friday following the announcement.
The move is part of an effort to keep the company afloat following a slowdown in the small-diamond market and a monthlong power disruption that shut down its processing plant, the company noted last month. Delisting, as well as reducing the size of its board, will cut costs and help Firestone survive the prolonged downturn, it added.
Firestone will also offer shareholders assistance in trading stock after the exit from AIM, it said.
Image: The Liqhobong mine. (Firestone Diamonds)