i-mate set to return to private ownership

Beleaguered i-mate is set to delist from Aim (the Alternative Investment Market which is part of the London Stock Exchange) as it struggles through a long string of hardships. Should the move be approved, Jim Morrison will once again assume the dual roles of chairman and CEO of the company. Given that Jim Morrison, i-mate’s CEO, owns over three quarters of the shares, the upcoming vote should be no more than a formality.

Delisting would save i-mate about USD$2 million in annual listing fees. With the company recording a USD$61.6 million loss in its last fiscal year and left with only USD$11.2m in cash reserves (down from USD$65 million in March 2007), the company is looking to save everywhere it can to survive.

When i-mate first listed its shares on Aim, they were worth more than £2. Today, they are worth less than a penny.

I really wonder if i-mate can survive, particularly now with the global economic downturn.

Read more about this story