US cableco First Communications’ shares have been suspended earlier than expected after Collins Stewart resigned as its nominated advisor.
It is understood that the broker had become frustrated with First Communications, which it found difficult to work…
US cableco First Communications’ shares have been suspended earlier than expected after Collins Stewart resigned as its nominated advisor.
It is understood that the broker had become frustrated with First Communications, which it found difficult to work with, and was keen to leave before the US group’s intended delisting from AIM on September 30.
First Communications’ shares yesterday closed at 0.0155p, down almost 100% on the year and valuing the company at US$416.98k.
Last week, First Communications called a general meeting for September 20 to discuss a delisting, saying it believed the AIM listing would not help it access additional capital. It added that accessing additional funds would be more efficient on a US exchange or as a private company.
On August 31, the group said it had raised US$4m in equity to cover an existing credit facility. An SEC filing revealed its two principal shareholders – First Energy Corporation and the Gores Group – had each provided US$2m in exchange for Series B Preferred shares.
Founded in 1988, First Communications provides integrated telecom services in the Midwestern US, where it serves some 214,000 customers. According to its website, it is a grouping of companies comprising First Communications, Globalcom, Xtension Services and First Telecom Services.
First Communications was unable to comment by press time.
