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MultiPower ASA

('MultiPower' or the 'Company')

PROPOSED CANCELLATION OF ADMISSION TO TRADING ON AIM 

Introduction

At the time of the interim results the directors of the Company (the 'Directors') announced that it was continuing a restructuring process and exploring commercial avenues in order to steer the Company towards profitability. Since that time the Directors have come to the view in light of certain commercial setbacks that more time will be needed to achieve profitability. As such the Directors believe that further cost cutting measures are necessary and that the costs of maintaining an AIM quotation outweigh the benefits conferred on the Company.

The proposed date for the cancellation of the Company's admission to trading on AIM ('Cancellation') is Friday 27 February 2009. The Cancellation is conditional upon the approval of not less than 75 per cent. of the votes cast by Shareholders (whether present in person or by Form of Direction) at the a general meeting of the Company to be convened prior to the date of Cancellation. Notice of the Extraordinary General Meeting and an information circular setting out the background to the proposed delisting will be sent out as soon as is practicable following this announcement and in any event within the next week.

Background to the Cancellation

Pursuant to Rule 41 of the AIM Rules, the Directors have notified the London Stock Exchange of their intention to cancel (subject to the passing of the resolution at the Extraordinary General Meeting) the admission of the ordinary shares in the Company to trading on AIM.

In making this decision the Directors have considered the ongoing expense of maintaining a quotation on AIM in relation to the Company's current size and financial position. Despite the best efforts of the Directors it has been extremely difficult to grow revenues sufficiently to meet the costs of running the Company. 

As previously announced the Company has had difficulties in the quality control of certain products due to a problem with a manufacturer and this has hindered the roll out of the Company's products in several regions despite securing distribution agreements with a network of companies. Given these delays the Directors believe that the Company will continue to be loss making in the short to medium term. 

The Company has limited cash resources and is currently seeking further funding from certain Norwegian investors to meet its liabilities. The Directors believe that investor interest in the Company is predominantly domestic in Norway and therefore a cancellation from AIM will not significantly disadvantage the Company in terms of raising further capital.

Following the Cancellation, the Ordinary Shares will not be quoted on a market in the UK and the Ordinary Shares will cease to be registered with CREST.  It is the Directors' intention that the Ordinary Shares will be admitted to trading on the OTC market in Norway as soon as possible. The Directors will keep shareholders informed of any developments in this regard. If the Directors are successful in achieving this domestic listing, the Directors will assist UK shareholders in reregistering their holdings on the Norwegian VPS at which point the Ordinary Shares will become tradable on the OTC market in Norway.

Recommendation

The Directors believe that it is in the best interests of the Company and its shareholders to seek the Cancellation. Accordingly, the Directors unanimously recommend that Shareholders vote in favour of the Cancellation resolution to be proposed at the General Meeting. The Company has separately notified the London Stock Exchange of its preferred date for the Cancellation, being Friday 27 February 2009.

Enquiries:

MultiPower	Jens M. Teigen  Thomas A. Kielland	+4790045073  +4740204428
HansonWesthouse	Bill Staple Martin Davison	020 7601 6100

 

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