SDX Energy Inc (LON:SDX, CVE:SDX) revealed it is to rationalise its corporate set-up to better fit the fact that its management team is based in London and its assets are in North Africa.
The company, in a statement, said the benefits of maintaining a dual listing and retaining its Canadian domicile status don’t justify the costs.
It will domicile to the United Kingdom, from Canada, and also de-list its shares from the Toronto venture exchange.
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This will be executed with the creation of a UK vehicle, SDX Energy plc, which will acquire the Canadian entity exchanging equity on a share-for-share basis.
SDX noted that there’s a lack of interest among Canadian institutions, meanwhile, it believes the formal move to the UK will help further raise its profile in the UK – it added that certain types of investors in London and Europe are unable to invest in non-UK domiciled companies.
The move will need to be approved by shareholders at an upcoming general meeting.
“The significant cost savings of this change, combined with the improved liquidity provided by trading on a single exchange, will benefit all shareholders,” said Paul Welch, SDX chief executive.
“I appreciate the support of our Canadian shareholders and look forward to working with them as they transition to AIM.”
South Disouq timelines
The company separately updated investors on the potential timeline for the South Disouq project, which could slip to the fourth quarter.
Prior guidance for a ‘mid-2019’ field start up is based on an envisaged development concept in which an early production facility (EPF) would be deployed, though SDX noted that as yet final commercial terms have not been reached for the EPF.
It noted that is an EPF is not secured, then the company would need to wait until the installation of the main Central Gas Processing Facility which is currently scheduled to complete in the fourth quarter of this year.
Welch added: “The potential delay to Q4 2019 for first gas in South Disouq is disappointing.
“Discussions on the merits of the EPF are ongoing, and we will advise the market when a final decision has been reached.”
